On Wednesday, SOS Ltd., a company headquartered in China, disclosed its intention to allocate $50 million to Bitcoin. It joins a number of other organizations that are incorporating cryptocurrency into their financial strategies as institutional investors become more interested in digital assets.
SOS Ltd Investments in Bitcoin
Yandai Wang, the Chairman and CEO of the company, stated in a statement that the decision is indicative of SOS’s conviction in Bitcoin as a strategic asset and a “store of value.”
“We believe this investment plan will further enhance the Company’s overall competitiveness and profitability in the digital asset investment sector,” Wang said.
SOS Ltd., a technology firm that was established in 2001, is a multifaceted organization that specializes in emergency rescue services, commodity trading, crypto operations, and blockchain. The company has a market capitalization of approximately $13 million and a global presence.
SOS has also actively expanded into crypto mining as of the beginning of this year, deploying over 8,483 super-computing servers in Fort Stockton, Texas, and 810 in Wisconsin. This has resulted in a combined hash rate of approximately 1.35 EH/s across its North American operations.
The company, which is headquartered in Qingdao, announced on Wednesday that it intends to implement quantitative trading strategies in order to mitigate market volatility and elevate returns.
The announcement is made at a time when Bitcoin is trading at a near-record high of $93,000, and analysts indicate that it may surpass $100,000 by the end of the year.
The crypto’s sustained rally this year has been further bolstered by the rise of Bitcoin-linked exchange-traded funds (ETFs) and regulatory clarity, which has further bolstered institutional interest.
SOS is endeavoring to emulate the U.S.-based company MicroStrategy in order to capitalize on the increasing prices. Approximately 386,700 BTC, valued at over $37.3 billion at current prices, were held by MicroStrategy and its subsidiaries as of November 24, 2024.
CEO Michael Saylor has emphasized the potential of Bitcoin as a preferable alternative to traditional reserves, and the company has incorporated it into its financial strategy since 2020.
Similar strategies have been implemented by other organizations. Metaplanet Holdings, the investing firm established by Jaan Tallinn, Co-Founder of Skype, has allocated a portion of its portfolio to Bitcoin. Currently, the firm holds approximately 1142 BTC, which is valued at over $109 million.
Tesla, another notable participant, initially acquired $1.5 billion in Bitcoin in 2021. However, in July 2022, CEO Elon Musk disclosed that the company sold a portion of the currency to optimize its cash reserves.
Arkham Intelligence, a blockchain analytics firm, reported that the automaker possessed approximately 11,509 BTC, which was valued at approximately $1.1 billion.
