Chinese Company SOS Ltd. Unveils $50M Bitcoin Purchase Plan; Stock Jumps Over 40%

Highlights:

• SOS Ltd. announces $50 million Bitcoin investment as BTC hits record highs.
• SOS aims for higher returns through Bitcoin investment strategies, boosting competitiveness and profitability.
• The firm’s Bitcoin move sparks an over 40% stock surge, potentially offsetting significant Year-to-Date losses.

On November 27, China-based company SOS Limited, a blockchain and commodity trading company, announced that its Board of Directors approved its plan to invest $50 million to buy Bitcoin (BTC). The purchase plan comes as Bitcoin hits record highs and continues to attract global investors. Recent market data shows Bitcoin’s price has risen to about $95,000 per coin, with forecasts predicting it could surpass $100,000 by the end of the year.

SOS CEO and chairman Yandai Wang said the firm holds a “long-term belief in Bitcoin” as a strategic asset and a global store of value. The company intends to use strategies such as investing, trading, and arbitrage to achieve higher returns and minimize market risks with its Bitcoin purchases. 

The Bitcoin market is performing well due to factors such as new Bitcoin-related exchange-traded funds and favorable regulatory advancements in the United States for digital assets, Wang said. He stated that the investment plan will enhance the company’s competitiveness and profitability in the digital asset sector. Also, increasing interest from institutional investors is contributing to Bitcoin’s growing momentum.

📰 UPDATE: PUBLICLY TRADED CHINESE COMPANY SOS ANNOUNCES PLAN TO PURCHASE $50M WORTH OF $BTC

— BSCN Headlines (@BSCNheadlines) November 27, 2024

SOS’s Bitcoin Move Sparks Stock Surge

SOS’s $50 million allocation to Bitcoin triggered a sharp rise in its stock price on the New York Stock Exchange. On Wednesday, SOS Ltd (SOS) shares closed with a 43% gain at $9.93. After-hours trading saw an additional 14.5% increase, reaching $11.36, according to Google Finance.

However, SOS shares are down 86.5% this year. This decline resulted in a noncompliance letter from the New York Stock Exchange (NYSE) in August due to poor performance. The shares have lost nearly all their value since peaking at $84.90 in October 2017. However, this Bitcoin-focused move and the resulting stock rally could help offset the company’s Year-to-Date losses.

SOS Ltd. Joins Growing List of Firms Adopting Bitcoin as a Reserve Asset

SOS Ltd. joined a rising number of firms worldwide and in Asia, adopting BTC as a reserve asset. On Nov. 12, Singapore-based Genius Group announced its first $120 million BTC purchase. Shortly after, the AI startup boosted its BTC holdings with an additional $14 million buy.

Metaplanet, based in Tokyo, started buying BTC in early April as part of its shift to alternative assets. Similar to MicroStrategy, it raised money through debt and equity sales to build its Bitcoin reserve. By Nov. 19, it owned over 1,421 BTC worth more than $104.5 million. Reports suggest Remixpoint, a Japanese firm, began building a corporate Bitcoin stash. 

JUST IN: 🇯🇵 Japanese public company Remixpoint announces to buy ¥500 million worth of #Bitcoin pic.twitter.com/zzGdNiH4Zg

— Bitcoin Magazine (@BitcoinMagazine) November 27, 2024

MicroStrategy, the largest known corporate Bitcoin holder, led this trend. Since 2020, the company has invested over $21 billion in BTC, with more than $15 billion in unrealized profits. Nation states have also embraced Bitcoin. Under President-elect Donald Trump, the U.S. began working on a strategic reserve. A White House executive order or a proposal from Senator Cynthia Lummis in Congress could bring this policy to fruition by next year.