Key Points
- SOS Limited, a China-based company, plans to invest up to $50 million in Bitcoin (BTC).
- They join a growing list of firms worldwide using BTC as a reserve asset.
SOS Limited, a company based in China, has announced its intention to leverage Bitcoin to enhance its investment portfolio and harness the value of the rapidly expanding cryptocurrency.
SOS Limited’s Bitcoin Strategy
The company’s CEO and chairman, Yandai Wang, revealed that the publicly listed firm is set to purchase Bitcoin worth up to $50 million. This decision has been sanctioned by the board of directors. Wang expressed that SOS maintains a “long-term belief in Bitcoin” as a strategic asset and a global store of value.
The intention to establish an SOS Bitcoin reserve underlines the company’s thesis while also growing its digital asset investments and increasing profits, according to a November 27 press statement.
Wang further commented that the Bitcoin market’s performance is robust, bolstered by positive developments such as the introduction of several BTC-related ETF options and continuous enhancements in the U.S. regulatory environment for digital assets.
The Growing Bitcoin Reserve Trend
SOS Ltd. is part of a rising trend of firms worldwide, including in Asia, that are adopting Bitcoin as a reserve asset. Singapore-based Genius Group revealed its initial $120 million Bitcoin purchase on November 12. Shortly after, the artificial intelligence startup bolstered its Bitcoin treasury with an additional $14 million acquisition.
Tokyo-based Metaplanet began purchasing Bitcoin in early April as it shifted towards alternative assets. Similar to MicroStrategy, the company raised capital through debt and equity sales to fund its accumulation. As of November 19, it owned over 1,421 Bitcoin, valued at more than $104.5 million.
Reports also indicated that Japanese company Remixpoint started allocating capital towards a corporate Bitcoin stash.
This news signifies a growing trend of private companies gravitating towards the world’s largest cryptocurrency. Leading the way is MicroStrategy, known as the biggest publicly acknowledged corporate Bitcoin holder. Since initiating its aggressive Bitcoin strategy in 2020, MicroStrategy has spent over $21 billion purchasing Bitcoin and has reported over $15 billion in unrealized profits.
Nation states have also begun to embrace Bitcoin. Under the leadership of then President-elect Donald Trump, the U.S. began working towards a strategic reserve. An executive White House order or a proposal from Senator Cynthia Lummis in Congress could potentially realize this policy as early as 2025.