China-based SOS Ltd. introduced plans on Wednesday to take a position $50 million in Bitcoin. The transfer locations it amongst a number of firms integrating crypto into their monetary methods as digital property achieve traction amongst institutional gamers.
In response to the corporate’s Chairman and CEO Yandai Wang, the choice displays SOS’s perception in Bitcoin as a “retailer of worth” and a strategic asset, he stated in an announcement.
“We imagine this funding plan will additional improve the Firm’s total competitiveness and profitability within the digital asset funding sector,” Wang stated.
Based in 2001, SOS Ltd. is a multifaceted know-how agency specializing in blockchain, crypto operations, commodity buying and selling, and emergency rescue companies. The corporate has a world presence and a market capitalization of roughly $13 million.
As of the beginning of this 12 months, SOS has additionally actively expanded into crypto mining, deploying over 8,483 super-computing servers in Fort Stockton, Texas, and 810 in Wisconsin, attaining a mixed hash fee of roughly 1.35 EH/s throughout its North American operations.
The Qingdao-based firm stated Wednesday it plans to make use of quantitative buying and selling methods to handle market volatility and improve returns, in response to the assertion.
The announcement comes as Bitcoin trades at near-record highs of $93,000, with analysts predicting it might surpass $100,000 by year-end.
Institutional curiosity has been additional bolstered by regulatory readability and the rise of Bitcoin-linked exchange-traded funds (ETFs), contributing to the crypto’s sustained rally this 12 months.
Looking for to faucet into rising costs, SOS is trying to observe within the footsteps of U.S.-based MicroStrategy. As of November 24, 2024, MicroStrategy, together with its subsidiaries, held roughly 386,700 BTC price over $37.3 billion at present costs.
The corporate has made Bitcoin a central part of its monetary technique since 2020, with CEO Michael Saylor citing its potential as a superior various to conventional reserves.
Different companies have adopted comparable methods. Metaplanet Holdings, the funding agency based by Skype co-founder Jaan Tallinn, has allotted a portion of its portfolio to Bitcoin, now holding roughly 1142 BTC valued at over $109 million.
Tesla, one other notable participant, initially bought $1.5 billion price of Bitcoin in 2021, although later bought a portion to maximise money positions, CEO Elon Musk stated in July 2022.
The automaker held roughly 11,509 BTC, valued at roughly $1.1 billion, in response to knowledge supplied by blockchain analytics agency Arkham Intelligence.
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