SOS Ltd to jump on Bitcoin bandwagon with $50M purchase, stock pops 40%
SOS Ltd, a China-based financial services conglomerate operating a Bitcoin mining facility in the U.S., announced a plan to purchase $50 million worth of Bitcoin, leading to a surge of over 40% in its stock price. The company's board approved this investment on November 27, citing a long-term belief in Bitcoin as a valuable asset. SOS intends to adopt various strategies, including trading and arbitrage, to optimize returns while managing market volatility. The stock closed at nearly $9.93 that day and climbed further in after-hours trading to $11.36, although it remains down over 86% for the year. The Bitcoin market has recently seen a significant rally, with prices approaching $100,000, driven in part by new Bitcoin ETF options and a favorable regulatory environment in the U.S. Other firms, such as Rumble and Genius Group, have also announced Bitcoin purchases amid their struggles with declining stock values and a lack of profitability.
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