SOS Ltd to jump on Bitcoin bandwagon with $50M purchase, stock pops 40%
Shares in the China-based financial services conglomerate SOS Ltd jumped over 40% after pledging to buy $50 million worth of Bitcoin — the latest in a string of firms to buy up the rallying cryptocurrency.
The company, which operates a Bitcoin ( BTC ) mining facility in Wisconsin, said on Nov. 27 that its board of directors approved the $50 million purchase as part of its “long-term belief in Bitcoin’s role as a store of value and a strategic asset.”
It plans to use “investing, trading and arbitrage strategies” with its Bitcoin buys to “maximize returns and mitigate market volatility.”
“Bitcoin market performance is robust and supported by positive developments such as the launch of several Bitcoin-related ETF options and ongoing improvements in the US regulatory environment for digital assets,” SOS chairman and CEO Yandai Wang said in a statement.
Shares in SOS Ltd (SOS) closed up nearly 43% to $9.93 on Nov. 27 and continued to climb nearly 14.5% in after-hours trading to $11.36, according to Google Finance.
SOS shares are, however, down 86.5% this year — which prompted a noncompliance letter from the New York Stock Exchange (NYSE) in August due to underperformance — and have essentially lost all value since hitting a peak of $84,900 in October 2017.
SOS shares hit a high of $15.35 during the Nov. 27 trading day before cooling by market close. Source: Google Finance
The dabbling crypto miner follows a string of firms now looking to catch a windfall from Bitcoin, which has soared around 40% over November from around $70,000 to now flirt with $100,000 — touching a high of $99,860 on Coinbase on Nov. 24.
On Nov. 25, the far-right YouTube alternative Rumble said it would buy $20 million worth of Bitcoin for its books, which sent its stock up nearly 13%.
Related: Bitcoin 30% correction in play ahead of $100K BTC rally — Analysts
Like SOS, Rumble has been plagued by a falling stock price over the years as it’s struggled to ever reach profitability. SOS last posted a yearly net income gain in 2020.
Genius Group, an artificial intelligence-backed education provider similarly plagued by a freefall share price, also allotted to Bitcoin earlier this month with a $10 million purchase of 110 Bitcoin alongside future plans to have its reserves hold up to 90% Bitcoin.
SOS did not immediately respond to a request for comment.
Asia Express: Bitcoin’s $100K push wakes taxman, Vitalik visits real Moo Deng
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
You may also like
Pump Science apologizes after GitHub key leak leads to fraudulent tokens
Share link:In this post: The DeSci platform Pump Science has warned its users not to trust any tokens launched using its Pump.fun profile. Pump Science said it would never launch its tokens on Pump.fun. While Pump Science holds BuilderZ partially responsible for the security breach, it does not think BuilderZ was the attacker.
Bitget Spot Bot adds MAJOR/USDT
We are pleased to announce that Bitget spot bot has now added: MAJOR/USDT. Reference 1. Spot grid 2. Crash course on Spot Grid Disclaimer Despite high growth potential, cryptocurrencies still face high risks and volatility. You are strongly advised to do your own research as you invest at your own
Craig Wright Ordered to Return to UK for Contempt of Court
Non-USD stablecoins may boost global e-commerce adoption