Author: Jesse Coghlan, CoinTelegraph; Translated by: Deng Tong, Golden Finance
China-based financial services group SOS Ltd has committed to purchasing $50 million worth of Bitcoin, with the company's stock price rising 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, supported by positive developments such as the launch of various Bitcoin-related ETF options and the ongoing improvement of the U.S. digital asset regulatory environment.'
On November 27, SOS Ltd's (SOS) stock price closed up nearly 43% to $9.93, continuing to rise 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 stock price of SOS hit a high of $15.35 on November 27 during trading, before closing lower. Source: Google Finance
Before this cryptocurrency-focused mining company, a series of companies are now seeking to gain unexpected wealth from Bitcoin. Bitcoin surged about 40% in November, rising from approximately $70,000 to the current $100,000, hitting a high of $99,860 on Coinbase on November 24.
On November 25, far-right YouTube site Rumble announced that it would purchase $20 million worth of Bitcoin for its books, a move that propelled its stock price up nearly 13%.
Like SOS, Rumble has struggled with falling stock prices for years, as it has found it difficult to achieve profitability. The last time SOS reported annual net profit growth was in 2020.
Genius Group is an AI-supported education provider that has also been troubled by a stock price crash, and earlier this month allocated $10 million to purchase 110 Bitcoins, planning to hold up to 90% of its reserves in Bitcoin in the future.
