Just In: Chinese Firm SOS To Buy Up To $50M Worth Of Bitcoin

Publicly-listed Chinese firm SOS Limited has unveiled its plans to strength its global crypto investment strategy with a $50 million allocation into Bitcoin (BTC). The company looks to bolster its involvement in the blockchain, crypto and commodities trading with the investment. Its Bitcoin purchase plans came after approval from its Board of Directors.

The SOS Bitcoin Bet – Right Timing?

SOS said it believes in potential of Bitcoin as a store of value and a strategic asset. Though it highlighted that the price of Bitcoin now trades at an average price of $93,000 per coin, the favorable US Policy shift is driving its appeal toward the coin.

The company said it also aligns with projections that the price of Bitcoin will surpass the $100,000 mark soon. As revealed, the planned $50 million investment is a complement to its effort to drive long-term value to its shareholders.

SOS Announces Plans To Purchase Up To $50M Worth Of Bitcoin “To Strengthen Global Crypto Investment Strategy”

— zerohedge (@zerohedge) November 27, 2024

This allocation from SOS comes days after MicroStrategy bought 55,500 Bitcoin for $5.4 billion. More institutional investors are beginning to allocate funds to the asset, helping to drive its overall momentum.

Following the news of the SOS $50 million allocation to Bitcoin, the shares of SOS on the New York Stock Exchange skyrocketed. Registering a 79.5% surge in 24 hours, SOS has added over $5 to the stock now priced for $12.48. This latest BTC pivot and share rally might help pare off the loses accrued Year-to-Date (YTD).

Getting Ahead of the Curve

A number of corporate firms have either turned or intensified their embrace of Bitcoin this month. Before the update from SOS, Semler Scientific also allocated capital to buy 297 BTC between November 18 and November 22, 2024. With this acquisition, its combined Bitcoin stash now comes in at 1,570 BTC worth $117.8 million.

The companies buying Bitcoin around the world have different core business focus. However, most are borrowing a leaf from the Michael Saylor playbook, characterized by consistent accumulation over time.

The push for Bitcoin investments intensified following the victory of Donald Trump in the US Presidential election. With the winning, there are expectations he will build a strategic Bitcoin reserve for the country. As reported earlier by Coingape, he has already proposed to establish a crypto advisory council that will help achieve the reserve plans.

In addition, industry leaders believes a big boost for crypto regulation will emerge, positioning most digital currencies for growth.