China-based financial services company SOS Ltd announced plans to invest $50 million in Bitcoin, leading to a stock surge of over 40% on November 27.
SOS Ltd's Financial Strategy
The company, which operates a Bitcoin mining facility in Wisconsin, approved the move to position Bitcoin as a core asset in its portfolio. Chairman and CEO Yandai Wang highlighted Bitcoin’s growing importance as a strategic asset, pointing to market resilience and favorable regulatory shifts in the United States. The firm plans to employ strategies like arbitrage and trading to optimize returns while managing price volatility.
A Troubled Year for the Company
This boost comes as a rare bright spot in an otherwise challenging year for SOS. Earlier, the company’s stock had plummeted by 86.5%, prompting a noncompliance warning from the New York Stock Exchange in August. The stock's current performance pales in comparison to its all-time high of $84,900 in October 2017. Bitcoin surged approximately 40% in November, hitting a high of $99,860 on Coinbase on November 24.
Industry Interest in Bitcoin Increases
SOS Ltd is not the only company turning to Bitcoin. On November 25, video platform Rumble announced a $20 million Bitcoin purchase, boosting its stock by nearly 13%. Similarly, Genius Group, an education technology provider, invested $10 million in Bitcoin. Despite these bold moves, some critics highlight the risks associated with market volatility and profitability challenges.
The growing institutional interest underscores Bitcoin’s evolving role in corporate strategies. However, only time will reveal whether these high-stakes investments will pay off.
