Bitcoin becomes the new favorite for asset allocation: Chinese concept stock SOS invests 50 million dollars, driving a surge in stock price

Author: Nancy, PANews

The strategy of incorporating Bitcoin into reserve assets is gaining popularity worldwide. Recently, the U.S. listed company SOS Ltd. announced plans to purchase $50 million worth of Bitcoin, which led to a significant surge in its stock price upon the announcement. Meanwhile, as Bitcoin's market recognition continues to rise, several domestic listed companies have begun to include Bitcoin in their reserve assets. This strategy not only optimizes the company's asset structure and brings additional revenue but also significantly drives up stock prices.

Announced $50 Million Bitcoin Investment Plan, Already Involved in Crypto Mining Years Ago

On November 27, SOS announced that its board had approved a plan to invest $50 million in Bitcoin. SOS believes this move emphasizes the company's commitment to advancing its blockchain industry and solidifies its long-term belief in Bitcoin as a store of value and strategic asset, further enhancing the company's overall competitiveness and profitability in the digital asset investment space.

After the announcement, SOS's stock price opened at a high of $15.11 before retreating, still achieving a gain of 42.88%. According to official information, SOS provides digital technology services for industries such as emergency rescue, big data marketing, international trade, and digital assets through core technologies like AI, blockchain, satellite communication, and big data, offering clients a one-stop digital solution. At the same time, SOS is a multi-faceted company engaged in Bitcoin, cryptocurrency business, and commodity trading, including cryptocurrency mining, with potential future expansions into cryptocurrency security and insurance.

In fact, SOS has been involved in the crypto mining sector for many years. For instance, as early as 2020, SOS announced it spent approximately $20 million to procure 14,238 Bitcoin mining machines and 1,408 Ethereum mining machines, expecting daily revenue of $206,000 at that time. In 2023, SOS announced the launch of over 5,000 self-owned mining machines at its Texas hosting center and has signed a hosting agreement with Bitmain, with a total of 6,000 hosted machines, valid until August 20, 2025.

Regarding this Bitcoin investment plan, SOS explained in the announcement that currently, Bitcoin has reached an all-time high and continues to attract global investor attention. Bitcoin is not only an important component of the digital asset ecosystem but also has the potential to become one of the global strategic reserve assets. Combining the positive dynamics of the current cryptocurrency market, including the U.S. policy environment's more favorable commitment to digital assets and major financial institutions' preference for Bitcoin, SOS is committed to bringing long-term value to shareholders and investors through continuous investment and technological innovation while actively contributing to the sustainable development of the global digital economy.

To maximize investment returns and reduce market volatility risks, SOS plans to adopt various quantitative trading strategies, including investment, trading, and arbitrage strategies, to help the company achieve stable returns in the current market environment while further optimizing its investment portfolio over time.

Multiple Hong Kong Companies Accumulate Bitcoin: Long-term Layouts Yield Rich Profits, Short-term Entries Drive Stock Prices Up

Since the second half of this year, an increasing number of listed companies worldwide have actively incorporated Bitcoin into their asset allocation, especially in the U.S. and Japan, where many listed companies have announced related plans aimed at optimizing financial structures and achieving asset appreciation, while also promoting the widespread application and popularization of crypto assets.

In addition to SOS, several Chinese listed companies have also shown strong interest and active participation. From the Bitcoin holdings of the five Hong Kong-listed companies discussed below, some companies have profited significantly from years of investment, but their stock prices have not seen notable increases this year. Conversely, some companies that announced Bitcoin investment plans this year experienced significant stock price increases after making substantial Bitcoin purchases.

Meitu: Bitcoin Holdings Have Yielded Over $40 Million in Profits

Meitu invested in crypto assets as early as 2021 and has not made any additional purchases or sales since then. According to data from BitcoinTreasuries.com, as of November 28, Meitu holds 941 Bitcoins, currently valued at over $89.98 million. Based on a cost price of $52,611, Meitu has realized a profit of over $40.473 million. According to disclosures from last year, Meitu is considering selling cryptocurrencies at an appropriate time, but currently has no specific disposal plans.

Market data shows that Meitu's stock price has not experienced a sustained upward trend this year, having fallen over 21.9% since the beginning of the year.

Boyaa Interactive: Holds Over 2,460 Bitcoins, Stock Price Has Soared Over 750% This Year

Boyaa Interactive is one of the largest listed companies in Asia by Bitcoin holdings. Market data shows that Boyaa Interactive's stock price has risen by 753.45% this year, reaching a new high not seen since October 2016.

According to a recent announcement from Boyaa Interactive, the company holds a total of 2,641 Bitcoins and 15,445 Ethereums, with a total holding cost of approximately $143 million, meaning the average cost per Bitcoin is $54,027 and $2,756 per Ethereum. Based on the latest prices as of November 28, Boyaa Interactive has realized a profit of over $165 million.

Guofu Innovation: Purchased HKD 36 Million in Bitcoin Within Six Months, Stock Price Rose Over 134%

After Guofu Innovation publicly announced its cryptocurrency investment plan, this Hong Kong-listed company purchased Bitcoin worth approximately HKD 36 million in the open market between March and August. Market data shows that since the announcement in March, Guofu Innovation's stock price has risen by about 134.7% at its peak.

NetDragon: Holds Crypto Assets for At Least Three Years, Has Profited HKD 51 Million

NetDragon Websoft Holdings, a Hong Kong-listed company, is a global online and mobile internet education company that builds an innovative educational ecosystem based on its technology and operational knowledge in mobile internet. In its 2021 annual report, NetDragon disclosed holdings of cryptocurrencies worth HKD 127 million, although the company incurred losses of several tens of millions in subsequent years. However, the 2024 mid-year report shows that the company sold cryptocurrencies worth HKD 290 million in the first half of this year, realizing a profit of HKD 51 million.

Market data shows that NetDragon's stock price has fallen by 19.6% since the beginning of the year, with only a brief upward trend.

Coolpad Group: BlackRock IBIT Holdings Have Yielded Approximately $2.19 Million in Profits

Coolpad Group invested tens of millions of dollars in crypto assets this year. In addition to purchasing shares in crypto mining companies, the company also invested approximately $4.03 million in 113,000 shares of BlackRock IBIT, with a share price of about $35.64. Based on the latest price of IBIT at $55.03, Coolpad has realized a profit of $2.191 million. Notably, Coolpad's announcement in October indicated that the company would continue to remain suspended from trading.