Original title: (Chinese concept stock SOS splurges 50 million USD to invest in Bitcoin, do Chinese listed companies aim to dance with stock prices?)
Original author: Nancy, PANews
The strategy of including Bitcoin as a reserve asset is becoming popular worldwide. Recently, SOS Ltd. (SOS), a company listed on the New York Stock Exchange, announced plans to purchase 50 million USD worth of Bitcoin, causing its stock price to soar after the news was released. Meanwhile, as Bitcoin's market recognition continues to grow, 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 rise of stock prices.
Announced a 50 million USD Bitcoin investment plan, has been involved in crypto mining for many years.
On November 27, SOS announced that the board has approved a plan to invest 50 million USD to purchase Bitcoin. SOS believes this move emphasizes the company's commitment to promoting its blockchain industry and consolidates its long-term belief in Bitcoin as a store of value and strategic asset, which will further enhance the company's overall competitiveness and profitability in the digital asset investment field.
After the news was announced, SOS's stock price opened at a high of 15.11 USD before retreating, still showing an increase of 42.88%. According to official information, SOS provides digital technology services for industries such as emergency rescue, big data marketing, international trade, and digital assets through core technologies like AI + blockchain + satellite communication + big data, offering clients a one-stop digital solution. At the same time, SOS is also a multi-field company engaged in Bitcoin, cryptocurrency business, and commodity trading, including cryptocurrency mining, with potential future expansions into cryptocurrency security and insurance.
In fact, SOS has been investing in crypto mining companies for many years. For example, as early as 2020, SOS announced that it spent about 20 million to purchase 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, with a total of 6,000 hosted machines, expiring on August 20, 2025.
Regarding this Bitcoin investment plan, SOS explained in the announcement that currently, Bitcoin has reached an all-time high and continues to attract global investors' 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. Combined with the positive dynamics of the current cryptocurrency market, including the more favorable commitment of the U.S. policy environment towards digital assets and the preference of major financial institutions for 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.
To maximize investment returns and reduce market volatility risks, SOS plans to adopt various quantitative trading strategies, including investment, trading, and arbitrage strategies, to help the company achieve stable returns in the current market environment, while further optimizing its investment portfolio over time.
Multiple Hong Kong companies have been buying Bitcoin: long-term investments have yielded substantial unrealized gains, while short-term entries have led to soaring stock prices.
Since entering the second half of this year, an increasing number of listed companies globally have actively included Bitcoin in their asset allocations, particularly in the United States and Japan, where many listed companies have announced related plans aimed at optimizing their financial structures and achieving asset appreciation, while also promoting the widespread application and popularity of crypto assets.
In addition to SOS, several Chinese listed companies have also shown strong interest and active participation. From the Bitcoin holdings of the five Hong Kong listed companies discussed below, some companies have made significant profits through years of investment, but their stock prices have not seen significant increases this year. Conversely, some companies that announced Bitcoin investment plans this year saw significant stock price increases after making large purchases of Bitcoin.
Meitu: Holding Bitcoin for many years has resulted in an unrealized gain of over 40 million USD.
The United States has invested in crypto assets as early as 2021 and has not made any additional purchases or sales since then. According to data from BitcoinTreasuries.com, as of November 28, Meitu holds 941 Bitcoins, currently worth over 89.98 million USD. Based on a cost price of 52,611 USD, Meitu has an unrealized gain of over 40.473 million USD. According to Meitu's disclosure last year, the company would consider selling cryptocurrencies at an appropriate time, but currently has no specific disposal plans.
Market data shows that Meitu's stock price has not seen a sustained upward trend this year, falling over 21.9% since the beginning of the year.
Boyaa Interactive: Holding over 2,460 Bitcoins, stock price has surged over 750% this year.
Boyaa Interactive is one of the largest listed companies in Asia by Bitcoin holdings. Market data shows that the stock price of Boyaa Interactive has risen 753.45% this year, reaching a new high since October 2016.
According to a recent announcement by Boyaa Interactive, the company holds a total of 2,641 Bitcoins and 15,445 Ethereum, with a total holding cost of about 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 prices on November 28, Boyaa Interactive has an unrealized gain of over 165 million USD.
Guofu Innovation: Purchased 36 million Hong Kong dollars worth of Bitcoin within six months, stock price rose over 134% at its peak.
After Guofu Innovation publicly announced its cryptocurrency investment plan, this Hong Kong listed company purchased Bitcoin worth approximately 36 million Hong Kong dollars in the open market from March to August. Market data shows that since the announcement in March, Guofu Innovation's stock price peaked with an increase of about 134.7%.
NetDragon: Held crypto assets for at least three years, has made a profit of 51 million yuan.
Hong Kong listed company NetDragon Network Holdings is a global online and mobile internet education company that creates an innovative educational ecosystem based on its technology and operational knowledge in the mobile internet. In its 2021 annual report, NetDragon disclosed that it held cryptocurrency worth 127 million yuan. In the following years, the company suffered millions in losses. The 2024 mid-term report shows that the company sold cryptocurrency worth 290 million yuan in the first half of this year, making a profit of 51 million yuan.
Market data shows that NetDragon's stock price has fallen 19.6% since the beginning of the year, with only a brief upward trend.
Coolpad Group: BlackRock IBIT holdings have unrealized gains of about 2.2 million USD.
Coolpad Group invested tens of millions of USD in crypto assets this year. In addition to acquiring shares in crypto mining companies, the company also invested approximately 4.03 million USD in 113,000 shares of BlackRock IBIT, priced at about 35.64 USD per share. Based on the latest price of IBIT at 55.03 USD, Coolpad has an unrealized gain of 2.191 million USD. It is worth mentioning that Coolpad's October announcement indicated that the company will continue to suspend trading.
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