Original title: (Chinese concept stock SOS splashes 50 million USD to invest in Bitcoin, are Chinese listed companies heavily buying BTC to dance with stock prices?)
Original author: Nancy, PANews
The strategy of incorporating Bitcoin into reserve assets is becoming globally popular. Recently, American New York Stock Exchange-listed company SOS Ltd. (SOS) announced it would purchase 50 million USD worth of Bitcoin, and the stock price surged immediately after the announcement. Meanwhile, as the market recognition of Bitcoin continues to rise, several domestic listed companies have begun to include Bitcoin in their reserve assets. This strategy not only optimizes the company's asset structure and brings additional profits but also significantly drives the rapid increase in stock prices.
Announced a 50 million USD Bitcoin investment plan, having been involved in crypto mining for many years.
On November 27, SOS announced that the board had approved a plan to invest 50 million USD to purchase Bitcoin. SOS believes this move emphasizes the company's commitment to advancing its blockchain industry and solidifies its long-term belief in Bitcoin as a store of value and strategic asset, further enhancing the company's overall competitiveness and profitability in the digital asset investment field.
After the announcement, SOS's stock price opened at a peak of 15.11 USD before falling back, with an increase of 42.88%. According to official introduction, SOS provides digital technology services for industries such as emergency rescue, big data marketing, international trade, and digital assets through core technologies such as AI + blockchain technology + satellite communication + big data, offering customers a one-stop digital solution. At the same time, SOS is also a multi-sector company engaged in Bitcoin, cryptocurrency business, and commodity trading, with operations including cryptocurrency mining, and may expand into cryptocurrency security and insurance in the future.
In fact, SOS has been involved in crypto mining enterprises for many years. For example, as early as 2020, SOS announced it spent approximately 20 million on purchasing 14,238 Bitcoin mining machines and 1,408 Ethereum mining machines, expecting to generate daily revenue of 206,000 USD at that time; in 2023, SOS announced the launch of over 5,000 self-owned mining machines at its Texas hosting center and has signed a hosting agreement with Bitmain for a total of 6,000 hosted machines, valid until August 20, 2025.
Regarding this Bitcoin investment plan, SOS explained in its announcement that currently, Bitcoin has reached an all-time high and continues to attract global investor attention. Bitcoin is not only an important part of the digital asset ecosystem but also has the potential to become one of the global strategic reserve assets. Considering the positive dynamics of the current cryptocurrency market, including the US policy environment's increasingly friendly commitment to digital assets and major financial institutions' favoring of Bitcoin, SOS is committed to bringing long-term value to shareholders and investors through continuous investment and technological innovation while actively supporting the sustainable development of the global digital economy.
In order to maximize investment returns and minimize market volatility risks, SOS plans to adopt various quantitative trading strategies including investment, trading, and arbitrage strategies to help the company achieve steady profits in the current market environment while further optimizing its investment portfolio over time.
Multiple Hong Kong stock companies are buying Bitcoin: Long-term layout results in substantial floating profits, while short-term entry leads to explosive stock price increases.
Since entering the second half of this year, an increasing number of listed companies globally are actively incorporating Bitcoin into their asset allocation, especially in the US and Japan, where several listed companies have announced related plans aimed at optimizing financial structures and achieving asset appreciation while promoting the widespread application and popularity of crypto assets.
In addition to SOS, some Chinese listed companies also show strong interest and active participation. From the Bitcoin holdings of the five Hong Kong-listed companies below, some companies have made significant profits through years of layout, but their stock prices have not shown significant increases this year. Conversely, companies that announced Bitcoin investment plans this year have seen significant stock price increases after making large purchases of Bitcoin.
Meitu: Bitcoin holdings for many years have resulted in floating profits of over 40 million USD.
As early as 2021, the United States had invested in crypto assets and has since made no additional purchases or sales. BitcoinTreasuries.com data shows that as of November 28, Meitu holds 941 Bitcoins, currently valued at over 89.98 million USD. Based on a cost price of 52,611 USD, Meitu has a floating profit of over 40.473 million USD. According to Meitu's disclosure last year, the company would consider selling cryptocurrencies at the right time, but currently has no specific disposal plans.
The market shows that Meitu's stock price has not experienced a sustained upward trend this year, falling over 21.9% from the beginning of the year to date.
Boya Interactive: Holds over 2,460 Bitcoins, with stock price soaring over 750% this year.
Boya Interactive is one of the largest listed companies in Asia in terms of Bitcoin holdings. The market shows that Boya Interactive's stock price has risen by 753.45% this year, reaching a new high since October 2016 at one point.
According to a recent announcement from Boya Interactive, the company holds a total of 2,641 Bitcoins and 15,445 Ethereum, with a total holding cost of approximately 143 million USD, meaning the average cost per Bitcoin is 54,027 USD and the cost per Ethereum is 2,756 USD. Based on the latest price on November 28, Boya Interactive has realized a floating profit of over 165 million USD.
Guofu Innovation: Purchased 36 million HKD worth of Bitcoin within half a year, with stock price rising over 134% at its peak.
Since Guofu Innovation publicly announced its cryptocurrency investment plan, this Hong Kong-listed company has purchased Bitcoin worth approximately 36 million HKD in the open market between March and August. The market shows that after the announcement in March, Guofu Innovation's stock price rose by about 134.7% at its peak.
NetDragon: Held crypto assets for at least three years, has profited 51 million.
Hong Kong-listed company NetDragon Websoft is a global online and mobile internet education company that builds an innovative education ecosystem based on its technology and operational knowledge in mobile internet. In its 2021 annual report, NetDragon disclosed it held cryptocurrencies worth 127 million, and in the following years, the company suffered losses of several tens of millions. However, the mid-2024 report shows that the company sold cryptocurrencies worth 290 million in the first half of this year, making a profit of 51 million.
The market shows that NetDragon's stock price has fallen by 19.6% from the beginning of the year to date, experiencing only a brief upward trend.
Coolpad Group: BlackRock IBIT holdings have realized a floating profit of about 2.2 million USD.
Coolpad Group invested tens of millions of dollars in crypto assets this year, in addition to purchasing shares of crypto mining companies, the company also invested approximately 4.03 million USD in 113,000 shares of BlackRock IBIT, with a share price of about 35.64 USD. Based on the latest price of 55.03 USD for IBiT, Coolpad has realized a floating profit of 2.191 million USD. It is worth mentioning that Coolpad's announcement in October showed that the company would continue to suspend trading.
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