China-based company SOS Limited plans to tap Bitcoin to support its investment portfolio and extract value from the fast-growing cryptocurrency.
SOS CEO and chairman Yandai Wang said the publicly traded firm would purchase up to $50 million worth of Bitcoin (BTC), as approved by the board of directors. According to Wang, SOS holds a âlong-term belief in Bitcoinâ as a strategic asset and a global store of value.Â
Plans to build an SOS BTC reserve further showcase the companyâs thesis while also expanding its digital asset investments and boosting profits, a Nov. 27 press statement said.
âBitcoin market performance is robust and supported by positive developments such as the launch of several BTC-related ETF options and ongoing improvements in the U.S. regulatory environment for digital assets.â
Yandai Wang, SOS CEO and chairman
Bitcoin reserve trend
SOS Ltd. joined a growing list of firms adopting BTC as a reserve asset in Asia and worldwide. Singapore-located Genius Group disclosed its first $120 million BTC buy on Nov. 12. Days later, the artificial intelligence startup strengthened its BTC treasury with another $14 million purchase.
Metaplanet in Tokyo started buying BTC in early April as it pivoted to alternative assets. Like MicroStrategy, the entity raised capital through debt and equity sales to finance its stockpile. It owned over 1,421 BTC valued north of $104.5 million as of Nov. 19.
There were also reports that the Japanese company Remixpoint started allocating capital toward a corporate BTC stash.
The news marked a growing trend of private establishments flocking to the worldâs biggest cryptocurrency. Michael Saylorâs MicroStrategy led the pack as the largest publicly known corporate BTC holder. Since starting its aggressive BTC strategy in 2020, MicroStrategy has spent over $21 billion buying BTC and boasted more than $15 billion in unrealized profits.
Nation states also jumped on the BTC bandwagon. The U.S., under President-elect Donald Trump, worked toward a strategic reserve. An executive White House order or a proposal from Senator Cynthia Lummis in Congress may realize this policy as early as 2025.
