SOS Limited, a Chinese data mining and technology company, announced on November 27 that its board has announced a $50 million investing in Bitcoin (BTC) to diversify its assets and capitalize on the growing strategic significance of the flagship crypto.
The company announced that it plans to implement several strategies for the investment, including direct acquisition, quantitative trading and arbitrage. SOS described Bitcoin as a “major digital asset” with the potential to play an important role in global reserve strategies.
Following the announcement, SOS Limited shares skyrocketed by almost 100% on November 27, reflecting increased investor enthusiasm. The company attributed the decision to its confidence in Bitcoin’s long-term potential to increase competitiveness and profitability in the digital asset space.
Bitcoin has been on a volatile trajectory since its price discovery during the US elections. After falling to $91,000 earlier this week – a seven-day low – it recovered to $97,000 on November 27, signaling a revival in the broader cryptocurrency market.
Bitcoin Business Acquisitions
SOS Limited joins a growing list of listed companies adding Bitcoin to their government bonds. MicroStrategy, led by outspoken Bitcoin advocate Michael Saylor, started this trend and has profited nearly $10 billion from its assets.
The company recently completed a $5.4 billion Bitcoin purchase in November, marking its third acquisition this month. The company has amassed more than $16 billion in Bitcoin this year, cementing its position as the largest corporate holder of the cryptocurrency.
Similarly, crypto mining company Marathon Digital raised $1 billion this month through a convertible bond offering, with plans to allocate a significant portion to Bitcoin purchases.
Despite Bitcoin approaching $99,000 this cycle, many analysts and companies remain optimistic about its long-term growth. Pantera Capital recently predicted that Bitcoin could reach $740,000 by 2028, while in the shorter term it set a target of $117,000 by mid-2025.
Strategic Vision
In its statement, SOS Limited emphasized its belief that Bitcoin represents a transformative opportunity for businesses and economies.
SOS Limited Chairman and CEO Yandai Wang said:
“We believe this investment will further enhance the company’s overall competitiveness and profitability in the digital asset investment sector.”
The company’s move signals increasing confidence in Bitcoin’s ability to function as a global reserve, even as the price of the flagship crypto remains highly volatile.
The rise in SOS Limited shares illustrates growing investor optimism about Bitcoin-related initiatives from public companies. This trend reflects a broader shift towards the mainstream adoption of cryptocurrencies as integral components of financial portfolios and business strategies.
