Bitcoin Emerges as a New Favorite for Asset Allocation: Chinese Concept Stock SOS Splurges $50 Million, Boosting Stock Price

Original Title: "Chinese Concept Stock SOS Spends Fifty Million US Dollars to Invest in Bitcoin, Chinese Listed Companies Make Big Moves to Acquire BTC, Is the Goal to Dance with the Stock Price?"

Original Author: Nancy, PANews

The strategy of including Bitcoin in reserve assets is gaining popularity worldwide. Recently, the U.S.-listed company SOS Ltd. (NYSE: SOS) announced that it will purchase $50 million worth of Bitcoin, causing its stock price to soar immediately after the news was released. Meanwhile, as Bitcoin's market acceptance continues to rise, several domestic listed companies have already included Bitcoin in their reserve assets. This strategy not only optimizes the company's asset structure and brings additional income but also significantly drives rapid stock price increases.

Announcing a $50 Million Bitcoin Investment Plan, Engaged in Crypto Mining Years Ago

On November 27, SOS announced that its board had approved a plan to invest $50 million to purchase Bitcoin. SOS believes that this move highlights the company's commitment to driving its blockchain industry and reinforces its long-term belief in Bitcoin as a store of value and strategic asset, further enhancing the company's overall competitiveness and revenue-generating capabilities in the digital asset investment field.

After the announcement, SOS's stock price opened with a sharp surge to a high of $15.11 before pulling back, with a still impressive 42.88% increase. According to official information, SOS uses core technologies such as AI, blockchain technology, satellite communication, and big data to provide digital technology services to industries such as emergency rescue, big data marketing, international trade, and digital assets, offering customers a one-stop digital solution. At the same time, SOS is also a multi-sector company engaged in Bitcoin, cryptocurrency, and commodity trading, with business activities including cryptocurrency mining, and possibly expanding to cryptocurrency security and insurance in the future.

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

Regarding the current Bitcoin investment plan, SOS explained in the announcement that Bitcoin has recently hit an all-time high and continues to attract global investor attention. Bitcoin is not only an essential part of the digital asset ecosystem but also has the potential to become one of the world's strategic reserve assets. In light of the positive developments in the cryptocurrency market, including the U.S. policy environment's increased friendliness towards digital assets and major financial institutions' favoritism towards Bitcoin, SOS is committed to bringing long-term value to shareholders and investors through continued investment and technological innovation, actively supporting the sustainable development of the global digital economy.

In order to maximize investment returns and reduce market volatility risk, the SOS Plan adopts multiple quantitative trading strategies including investment, trading, and arbitrage strategies to help the company achieve stable profits in the current market environment, while further optimizing the investment portfolio over time.

Multiple Hong Kong Stock Companies Buy Bitcoin in Bulk: Long-term Strategy Yields Abundant Profits, Short-term Investment Leads to Price Surges

Since the second half of this year, an increasing number of global publicly listed companies have actively incorporated Bitcoin into their asset allocation. Particularly in the United States and Japan, many listed companies have announced related plans aimed at optimizing their financial structure to achieve asset appreciation, thereby promoting the widespread adoption and popularization of cryptocurrency assets.

In addition to SOS, some Chinese listed companies have also shown strong interest and active participation. Looking at the Bitcoin holdings of five Hong Kong-listed companies below, some companies have made substantial profits through years of strategic positioning, but their stock prices have not shown significant increases this year. On the other hand, some companies that announced Bitcoin investment plans this year saw significant increases in their stock prices after making large Bitcoin purchases.

Meitu: Holding Bitcoin for Years with Unrealized Gains Exceeding $40 Million

As early as 2021, Meitu had invested in cryptocurrency and has not engaged in any additional purchases or selling since then. According to BitcoinTreasuries.com data, as of November 28, Meitu holds 941 Bitcoins, valued at over $89.98 million. Based on a cost price of $52,611 per Bitcoin, Meitu has unrealized gains exceeding $40.473 million. Meitu disclosed last year that the company would consider selling the cryptocurrency at the appropriate time but currently has no specific disposal plans.

The market shows that Meitu's stock price has not experienced a sustained upward trend this year, with a decrease of over 21.9% since the beginning of the year.

Joyy Inc.: Holding Over 2,460 Bitcoins, Stock Price Surges Over 750% This Year

Joyy Inc. is one of the Asian publicly listed companies with the largest Bitcoin holdings. Market data shows that Joyy Inc.'s stock price has risen by 753.45% so far this year, reaching a new high not seen since October 2016.

According to a recent announcement by Joyy Inc., the company holds a total of 2,641 Bitcoins and 15,445 Ethereum, with a total cost of approximately $143 million, averaging $54,027 per Bitcoin and $2,756 per Ethereum. Based on the latest prices as of November 28, Joyy Inc. has unrealized gains exceeding $165 million.

Nationz Wealth Innovation: Purchases $36 Million Hong Kong Dollars Worth of Bitcoin in Six Months, Stock Price Soars Over 134%

Since Nationz Wealth Innovation publicly disclosed its cryptocurrency investment plan, the Hong Kong-listed company has purchased approximately $36 million Hong Kong dollars worth of Bitcoin on the open market from March to August. Market data shows that since the announcement in March, Nationz Wealth Innovation's stock price has surged by about 134.7% at its peak.

NetDragon: Holds Cryptocurrency for at Least Three Years, Realizes $51 Million in Gains

Hong Kong-listed company NetDragon Websoft Holdings is a global online and mobile internet education company that has built an innovative educational ecosystem leveraging its technology and operational expertise in mobile internet. As early as its 2021 annual report, NetDragon disclosed holding $127 million worth of cryptocurrency, which led to losses of millions in the following years. However, the 2024 interim report shows that the company has sold a total of $290 million worth of cryptocurrency in the first half of this year, resulting in a gain of $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: Belaid IBIT Holdings Showing Unrealized Gains of Approximately $2.2 Million

This year, Coolpad Group has invested tens of millions of US dollars in cryptocurrency. In addition to acquiring stakes in a cryptocurrency mining company, the company has also invested around $4.03 million in 113,000 shares of Belaid IBIT at an average price of about $35.64 per share. Based on IBIT's latest price of $55.03, Coolpad has unrealized gains of $2.191 million. It is worth mentioning that Coolpad's October announcement indicates that the company will continue to be suspended from trading.

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