As a seasoned researcher with a keen interest in the dynamic world of finance and technology, I find myself intrigued by the recent moves of companies like SOS Ltd to invest in Bitcoin. My personal journey has led me through various market cycles, and I must admit, I’ve seen my fair share of ups and downs.
Stocks for the Chinese financial services group SOS Ltd surged by more than 40% following their announcement of purchasing $50 million in Bitcoin, adding to the growing list of companies investing in the soaring digital currency.
The business, which runs a Bitcoin (BTC) mining operation in Wisconsin, announced on November 27th that their board of directors had agreed to a $50 million acquisition. This move is based on the company’s long-term conviction that Bitcoin serves as a valuable store and strategic asset.
They intend to employ a variety of investment tactics such as buying, selling, and leveraging price differences among different Bitcoin markets to optimize earnings and lessen the impact of market fluctuations.
According to Yandai Wang, the head of SOS, the Bitcoin market is strong and bolstered by favorable advancements like the debut of various Exchange Traded Funds (ETFs) tied to Bitcoin and continued enhancements in the United States’ regulatory system for digital assets.
On November 27th, SOS Ltd (SOS) shares ended the day with a significant increase of approximately 43%, closing at $9.93. Following this, during extended trading hours, the stock price continued to rise by around 14.5%, reaching $11.36, as per Google Finance’s report.
Despite an 86.5% drop this year, SOS shares have received a warning letter from the New York Stock Exchange (NYSE) for poor performance in August. Since reaching a high of $84,900 in October 2017, these shares have effectively wiped out their value.
A casual cryptocurrency trader is jumping on the bandwagon of businesses aiming to profit from Bitcoin‘s surge. In November alone, Bitcoin has risen approximately 40%, climbing from roughly $70,000 to almost reach $100,000 – reaching a peak of $99,860 on Coinbase on the 24th of November.
On November 25th, the video platform Rumble, often associated with the far-right, announced a plan to invest $20 million in Bitcoin. This decision led to an approximately 13% increase in the company’s stocks.
Similarly to how SOS experienced a consistent drop in its stock price due to persistent struggles with achieving profitability, Rumble has faced a similar fate. Notably, SOS reported a positive annual net income growth only in 2020.
In simpler terms, just like other companies struggling with falling stock prices, Genius Group – an educational service that leverages AI – recently invested in Bitcoin. They bought around 110 Bitcoins worth about $10 million, and they plan to increase their holdings significantly, potentially making up to 90% of their reserves in Bitcoin.
SOS did not immediately respond to a request for comment.
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2024-11-28 05:08