SOS Stock Rallies After Board Approves Plan To Invest $50M To Purchase Bitcoin: Retail Chatter Hits One-Year High
By Stocktwits Inc | First Published Nov 27, 2024, 10:26 PM ISTThe company plans to employ a variety of quantitative trading strategies, including investing, trading and arbitrage strategies in order to maximize its returns and tackle volatility.
Shares of crypto-miner SOS ($SOS) surged nearly 78% on Wednesday after the company announced its board of directors approved a plan to invest $50 million to purchase Bitcoin ($BTC.X).
“SOS's investment strategy aligns closely with the positive momentum in the cryptocurrency market, including a more favorable U.S. policy environment toward digital assets and growing institutional support for Bitcoin,” it said in a statement.
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SOS became the third-most trending ticker on Stocktwits on Wednesday morning following the announcement.
The company plans to employ a variety of quantitative trading strategies, including investing, trading and arbitrage strategies in order to maximize its returns and tackle volatility.
CEO Yandai Wang said Bitcoin market performance is robust and supported by positive developments such as the launch of several Bitcoin-related ETF options and ongoing improvements in the U.S. regulatory environment for digital assets.
“We believe this investment plan will further enhance the Company's overall competitiveness and profitability in the digital asset investment sector,” Wang said.
Following the announcement, retail sentiment on Stocktwits jumped into the ‘bullish’ territory (63/100) from ‘bearish’ a day ago, accompanied by extremely high retail chatter that hit a one-year high.
Retail chatter on Stocktwits, however, indicated mixed sentiments on the stock.
Bitcoin prices have rallied significantly since Republican Donald Trump emerged victorious in the Presidential elections held in early November.
However, after hitting the high of $99,655.50, the crypto asset witnessed some profit-booking. On Wednesday, Bitcoin was trading nearly 4% higher at $95,548.
Recently, video-sharing platform Rumble Inc ($RUM) announced that its board has approved a corporate treasury diversification strategy that includes allocating a portion of the firm’s excess cash reserves to Bitcoin. The strategy includes the purchase of up to $20 million in Bitcoin at the firm’s discretion.
Ed-tech company Genius Group ($GNS) also revealed plans to integrate Bitcoin into its treasury strategy akin to MicroStrategy’s ($MSTR) approach.
Meanwhile, SOS stock is down over 83% on a year-to-date basis despite Wednesday’s rally.
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