SOS Ltd. Announces $50 Million Bitcoin Investment, Stock Surges 84% Amid Crypto Market Rally

China-based SOS Ltd. just announced that it plans to invest $50 million in Bitcoin. This move puts them in the company of several firms that are embracing cryptocurrency as part of their financial strategies.

According to the company's Chairman and CEO, Yandai Wang, this decision shows SOS's confidence in Bitcoin as a strong "store of value" and a strategic asset. He stated, "We believe this investment plan will further enhance the Company's overall competitiveness and profitability in the digital asset investment sector."

Founded in 2001, SOS Ltd. is a diverse technology firm. They specialize in blockchain, crypto operations, commodity trading, and emergency rescue services. With a global presence, their market capitalization is around $13 million.

This year, SOS has also been expanding into crypto mining. They’ve deployed over 8,483 super-computing servers in Fort Stockton, Texas, and 810 in Wisconsin. Their combined hash rate across North America is about 1.35 EH/s.

On Wednesday, the Qingdao-based company shared that it plans to use quantitative trading strategies to manage market volatility and boost returns.

Interestingly, this announcement comes as Bitcoin is trading near record highs of $93,000. Analysts predict it could even surpass $100,000 by the end of the year.

Institutional interest in Bitcoin is on the rise, thanks to clearer regulations and the introduction of Bitcoin-linked exchange-traded funds (ETFs). These factors contribute to the ongoing rally in the crypto market this year.

SOS aims to capitalize on these rising prices, following in the footsteps of U.S.-based MicroStrategy. As of November 24, 2024, MicroStrategy and its subsidiaries held approximately 386,700 BTC, valued at over $37.3 billion. They have made Bitcoin a key part of their financial strategy since 2020, with CEO Michael Saylor emphasizing its potential as a better alternative to traditional reserves.

Other firms are also adopting similar strategies. For example, Metaplanet Holdings, founded by Skype co-founder Jaan Tallinn, has allocated part of its portfolio to Bitcoin. They currently hold about 1,142 BTC, valued at over $109 million.

Then there’s Tesla. They initially purchased $1.5 billion worth of Bitcoin in 2021 but later sold some to optimize their cash position. As of now, Tesla holds around 11,509 BTC, valued at about $1.1 billion, according to data from blockchain analytics firm Arkham Intelligence.

In a different arena, Crypto.com is sponsoring a new professional golf competition. There will be millions of dollars in CRO—the native token of the Cronos network—up for grabs. The Crypto.com Showdown will feature LIV Golf pros Brooks Koepka and Bryson DeChambeau competing against former PGA Tour rivals Rory McIlroy and Scottie Scheffler, the current top-ranked player in the world.

After SOS Ltd. announced its Bitcoin investment, the company's stock surged over 97%, reaching $13.81. Although it has since dropped to $12.79, it remains up 84% for the day.

Additionally, Ripple Labs has donated $25 million to the pro-crypto super political action committee (PAC) Fairshake. This move aims to strengthen the digital asset industry's influence in Washington, D.C. A super PAC collects donations from corporations and wealthy individuals, distributing those funds to political candidates likely to support their interests. Ripple Labs CEO Brad Garlinghouse mentioned on Tuesday that his firm would donate another $25 million to Fairshake.