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According to the company’s Chairman and CEO Yandai Wang, the decision reflects SOS's belief in Bitcoin as a "store of value" and a strategic asset, he said in a statement.
“We believe this investment plan will further enhance the Company's overall competitiveness and profitability in the digital asset investment sector,” Wang said.
Founded in 2001, SOS Ltd. is a multifaceted technology firm specializing in blockchain, crypto operations, commodity trading, and emergency rescue services. The company has a global presence and a market capitalization of approximately $13 million.
As of the start of this year, SOS has also actively expanded into crypto mining, deploying over 8,483 super-computing servers in Fort Stockton, Texas, and 810 in Wisconsin, achieving a combined hash rate of approximately 1.35 EH/s across its North American operations.
The Qingdao-based company said Wednesday it plans to employ quantitative trading strategies to manage market volatility and enhance returns, according to the statement.
The announcement comes as Bitcoin trades at near-record highs of $93,000, with analysts predicting it could surpass $100,000 by year-end.
Institutional interest has been further bolstered by regulatory clarity and the rise of Bitcoin-linked exchange-traded funds (ETFs), contributing to the crypto's sustained rally this year.
Seeking to tap into rising prices, SOS is attempting to follow in the footsteps of U.S.-based MicroStrategy. As of November 24, 2024, MicroStrategy, along with its subsidiaries, held approximately 386,700 BTC worth over $37.3 billion at current prices.
The company has made Bitcoin a central component of its financial strategy since 2020, with CEO Michael Saylor citing its potential as a superior alternative to traditional reserves.
Other firms have adopted similar strategies. Metaplanet Holdings, the investment firm founded by Skype co-founder Jaan Tallinn, has allocated a portion of its portfolio to Bitcoin, now holding roughly 1142 BTC valued at over $109 million.
Tesla, another notable participant, initially purchased $1.5 billion worth of Bitcoin in 2021, though later sold a portion to maximize cash positions, CEO Elon Musk said in July 2022.
The automaker held roughly 11,509 BTC, valued at roughly $1.1 billion, according to data provided by blockchain analytics firm Arkham Intelligence.