SOS Ltd., a cloud computing and crypto mining company based in China, revealed plans on Wednesday to invest $50 million in Bitcoin. Following the announcement, the company’s stock price surged by over 97%, reaching $13.81, before settling at $12.79.
The company described Bitcoin as a “cornerstone of the digital asset ecosystem” and a potential global strategic reserve. This move signals SOS Ltd.’s growing focus on digital assets.
Yandai Wang, SOS CEO and chairman said “Bitcoin market performance is robust and supported by positive developments such as the launch of several BTC-related ETF options and ongoing improvements in the U.S. regulatory environment for digital assets.”
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More Followed The Strategic Treasury Reserve
Bitcoin’s recent price spike to over $99,000, fueled by market trends and political events like Donald Trump’s re-election, has encouraged other companies to adopt similar strategies. Rumble, a video platform, announced a $20 million Bitcoin treasury this week, boosting its stock by 17%. Earlier, Genius Group disclosed plans to invest $120 million in Bitcoin, triggering a 79% stock price jump.
These firms appear to be following MicroStrategy’s lead. Since 2020, the business intelligence company has been a major Bitcoin buyer, accumulating $37.6 billion worth of BTC. MicroStrategy’s stock has surged 2,397% since its first Bitcoin purchase, highlighting the potential rewards of corporate crypto investments.
The trend shows that businesses are increasingly turning to Bitcoin as both an inflation hedge and a long-term growth strategy.
