Author: Jesse Coghlan, CoinTelegraph; Translated by: Deng Tong, Golden Finance
The China-based financial services group SOS Ltd has committed to purchasing $50 million worth of Bitcoin, resulting in a stock price increase of over 40%.
The company operates a Bitcoin mining facility in Wisconsin and noted on November 27 that its board approved a $50 million acquisition as part of its 'long-term belief in Bitcoin as a store of value and strategic asset.'
It plans to use 'investment, trading, and arbitrage strategies' when purchasing Bitcoin to 'maximize returns and mitigate market volatility.'
SOS Chairman and CEO Yandai Wang stated in a statement: 'The Bitcoin market is performing strongly and is supported by positive developments, such as the launch of various Bitcoin-related ETF options and the continued improvement of the U.S. digital asset regulatory environment.'
On November 27, SOS Ltd (SOS) saw its stock close up nearly 43% to $9.93, continuing to climb nearly 14.5% in after-hours trading to $11.36.
However, SOS's stock price has fallen 86.5% this year—due to poor performance, the New York Stock Exchange (NYSE) issued a non-compliance letter in August—essentially losing all value since peaking at $84,900 in October 2017.
The SOS stock price reached a high of $15.35 on November 27, before closing lower. Source: Google Finance
Before this cryptocurrency mining company, a series of companies are now seeking to gain unexpected fortunes from Bitcoin. Bitcoin surged about 40% in November, rising from around $70,000 to its current $100,000, hitting a high of $99,860 on Coinbase on November 24.
On November 25, the far-right YouTube site Rumble announced it would purchase $20 million worth of Bitcoin for its books, driving its stock price up nearly 13%.
Like SOS, Rumble has been plagued by falling stock prices for years, as it has struggled to become profitable. The last annual net profit growth announced by SOS was in 2020.
Genius Group is an AI-powered education provider also troubled by plummeting stock prices, which earlier this month allocated $10 million to purchase 110 Bitcoins and plans to hold up to 90% of its reserves in Bitcoin in the future.
