A publicly listed company based in China, SOS Limited, which operates Bitcoin mining farms in the United States, announced plans to purchase $50 million worth of Bitcoin, causing a significant rise in its stock price. (Background: Is Trump 2.0's cabinet forming a cryptocurrency national team? More than five members are Bitcoin veterans) (Additional Background: Is there a Thanksgiving curse on Bitcoin? Statistics show that the likelihood of price drops in the past decade is as high as 70%) Yesterday (27th), SOS Limited, a publicly listed company based in China that operates Bitcoin mining farms in the U.S., announced plans to buy $50 million worth of Bitcoin, resulting in a substantial increase in the company's stock price, making it one of the latest examples of companies purchasing Bitcoin. Why is SOS investing in Bitcoin? SOS stated that this $50 million Bitcoin acquisition plan expresses the company's confidence in Bitcoin as a global "store of value and strategic asset." They plan to respond to market fluctuations through "investment, trading, and arbitrage strategies" to maximize returns. SOS CEO Wang Yandai pointed out: "The Bitcoin market is currently performing strongly and is supported by several positive developments, including the launch of related ETF products and the gradual improvement of the regulatory environment for digital assets in the United States." He emphasized that this Bitcoin investment plan will further enhance the company's overall competitiveness and profitability in the field of digital asset investment. SOS Stock Price Surge After the announcement, SOS's stock price surged approximately 42.88% to close at $9.93 on the 27th, and continued to rise in after-hours trading. However, despite the short-term rebound in stock price, SOS's stock price has still fallen 86.7% this year, indicating long-term operational difficulties for the company. Note: SOS received a notice of violation from the New York Stock Exchange (NYSE) in August 2024, indicating that its stock performance did not meet standards and faced the risk of delisting. Many companies are following Bitcoin strategies As more and more companies view Bitcoin as a long-term value-preserving asset, the cryptocurrency craze is gradually spreading and attracting widespread market attention. Despite the high volatility of Bitcoin prices, many companies still believe it has the potential to become "digital gold" and choose to incorporate it into their capital operation strategies. SOS is not the only company optimistic about Bitcoin. Rumble, a far-right YouTube alternative platform facing pressure from declining stock prices, announced on the 25th that it would invest $20 million to purchase Bitcoin. After the announcement, Rumble's stock price increased by nearly 13%, indicating that Bitcoin remains attractive to some companies in distress. Additionally, Genius Group, an AI-supported education company, also announced this month that it would spend $10 million to purchase 110 Bitcoins and plans to convert 90% of its future reserves into Bitcoin. The company's stock price subsequently rose by more than 22% to $0.91 but has not yet recovered to the post-announcement level of $1.05, which is far from the historical high of $96.80 in June 2022. Recently, several publicly listed companies with long-term depressed stock prices have expressed intentions to purchase Bitcoin, hoping to break through their current dilemmas through investment or holding Bitcoin. In the short term, these investments seem to help stock prices, but the long-term effects remain to be seen. Related Reports Is Trump 2.0's cabinet forming a cryptocurrency national team? More than five members are Bitcoin veterans Is there a Thanksgiving curse on Bitcoin? Statistics show that the likelihood of price drops in the past decade is as high as 70% Publicly listed company LQR House announces a $1 million investment in Bitcoin, its e-commerce platform opens crypto payments for buying wine "Chinese mining company SOS announces plans to purchase $50 million worth of Bitcoin, 'stock price surges 42%', another company wants to rely on BTC for survival" This article was first published on BlockTempo (the most influential blockchain news media).

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