China-based SOS Ltd. announced plans on Wednesday to invest $50 million in Bitcoin. The move places it among several companies integrating crypto into their financial strategies as digital assets gain traction among institutional players.
According to the company’s Chairman and CEO Yandai Wang, the decision reflects SOS’s belief in Bitcoin as a “store of value” and a strategic asset, he said in a statement.
“We believe this investment plan will further enhance the Company’s overall competitiveness and profitability in the digital asset investment sector,” Wang said.
Founded in 2001, SOS Ltd. is a multifaceted technology firm specializing in blockchain, crypto operations, commodity trading, and emergency rescue services. The company has a global presence and a market capitalization of approximately $13 million.
As of the start of this year, SOS has also actively expanded into crypto mining, deploying over 8,483 super-computing servers in Fort Stockton, Texas, and 810 in Wisconsin, achieving a combined hash rate of approximately 1.35 EH/s across its North American operations.
The Qingdao-based company said Wednesday it plans to employ quantitative trading strategies to manage market volatility and enhance returns, according to the statement.
The announcement comes as Bitcoin trades at near-record highs of $93,000, with analysts predicting it could surpass $100,000 by year-end.
Institutional interest has been further bolstered by regulatory clarity and the rise of Bitcoin-linked exchange-traded funds (ETFs), contributing to the crypto’s sustained rally this year.
Seeking to tap into rising prices, SOS is attempting to follow in the footsteps of U.S.-based MicroStrategy. As of November 24, 2024, MicroStrategy, along with its subsidiaries, held approximately 386,700 BTC worth over $37.3 billion at current prices.
The company has made Bitcoin a central component of its financial strategy since 2020, with CEO Michael Saylor citing its potential as a superior alternative to traditional reserves.
Other firms have adopted similar strategies. Metaplanet Holdings, the investment firm founded by Skype co-founder Jaan Tallinn, has allocated a portion of its portfolio to Bitcoin, now holding roughly 1142 BTC valued at over $109 million.
Tesla, another notable participant, initially purchased $1.5 billion worth of Bitcoin in 2021, though later sold a portion to maximize cash positions, CEO Elon Musk said in July 2022.
The automaker held roughly 11,509 BTC, valued at roughly $1.1 billion, according to data provided by blockchain analytics firm Arkham Intelligence.
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Sebastian Sinclair
https://decrypt.co/293942/china-based-sos-joins-corporate-bitcoin-trend-50m-investment
2024-11-28 02:59:42
