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China-based financial services giant SOS Ltd saw its stock skyrocket by over 40% on November 27 after unveiling plans to invest $50 million in Bitcoin. The company, which operates a Bitcoin mining facility in Wisconsin, stated that its board approved the move as part of its strategy to position Bitcoin as a core asset in its portfolio.
In an official <a href="https://www.prnewswire.com/news-releases/sos-announces-plans-to-strengthen-global-crypto-investment-strategy-and-purchase-up-to-50-million-worth-of-bitcoin-302317469.html" rel="noopener noreferrer nofollow">statement</a>, SOS chairman and CEO Yandai Wang stated Bitcoin’s growing significance as a “store of value and a strategic asset,” citing recent market resilience and favorable regulatory shifts in the United States. The firm plans to use strategies such as arbitrage and trading to optimize returns while managing price volatility.
The announcement caused SOS Ltd (SOS) shares to <a href="https://www.google.com/finance/quote/SOS:NYSE" rel="noopener noreferrer nofollow">jump</a> 43% by the close of trading, reaching $9.93. After-hours trading extended the gains by another 14.5%, with the stock climbing to $11.36.
<h2 id="span-style-font-weight-400-a-turnaround-amidst-a-troubled-year-span">A Turnaround Amidst a Troubled Year</h2>
This boost comes as a rare bright spot in an otherwise challenging year for SOS. The company’s stock has plummeted by 86.5% in 2024, prompting a noncompliance warning from the New York Stock Exchange in August. The stock’s current performance pales in comparison to its all-time high of $84,900 in October 2017.
SOS Ltd’s bold Bitcoin play follows a trend among firms looking to capitalize on the cryptocurrency’s extraordinary rally. Bitcoin surged approximately 40% in November, hitting a high of $99,860 on Coinbase on November 24.
Recent market enthusiasm has been driven by developments such as the launch of Bitcoin-related ETFs and improving regulatory clarity in the U.S. digital asset sector.
<h2 id="span-style-font-weight-400-industry-wide-bitcoin-moves-gain-traction-span">Industry-Wide Bitcoin Moves Gain Traction</h2>
SOS Ltd isn’t the only company pivoting to Bitcoin to bolster its fortunes. On November 25, video platform <a href="https://thecoinrise.com/rumble-considers-adding-bitcoin-to-its-balance-sheet-shares-surge/" rel="noopener noreferrer nofollow">Rumble announced a $20 million Bitcoin purchase</a>, which sent its stock up nearly 13%. Similarly, Genius Group, an education provider integrating artificial intelligence, allocated $10 million to Bitcoin earlier this month and revealed plans to hold up to 90% of its reserves in the cryptocurrency.
Despite these bold moves, critics remain cautious, highlighting the risks associated with market volatility and the challenges of profitability. For SOS, its Bitcoin gamble could either mark the beginning of a turnaround or add another chapter to its ongoing struggles.
As <a href="https://thecoinrise.com/bitcoin-traders-bet-big-on-100k-milestone-as-options-demand-surges/" rel="noopener noreferrer nofollow">Bitcoin price continues to hover near $100,000</a>, the growing institutional interest underscores the cryptocurrency’s evolving role in corporate strategies. However, only time will reveal whether these high-stakes investments will pay off.
The post <a href="https://thecoinrise.com/sos-ltd-rallies-40-after-50-million-bitcoin-purchase-announcement/" rel="noopener noreferrer nofollow">SOS Ltd Rallies 40% After $50 Million Bitcoin Purchase Announcement</a> appeared first on <a href="https://thecoinrise.com/" rel="noopener noreferrer nofollow">TheCoinrise.com</a>.

SOS Ltd Rallies 40% After $50 Million Bitcoin Purchase Announcement

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