SOS Limited invests $50 million in Bitcoin

The Chinese company SOS Limited, known for, among other things, a Bitcoin miner in Wisconsin, has announced plans to invest $50 million in Bitcoin. In a press release highlights the company's "long-term confidence in Bitcoin as a store of value."

At the current share price, this investment would allow SOS Limited to add about 524 BTC to its balance sheet. The announcement immediately caused an increase in the SOS share price. The share doubled in value, from $7 to a maximum of $15. After a correction, the share price is now around $11.

CEO Yandai Wang states, "We believe this investment will strengthen our competitiveness and profitability in digital assets."

Still, SOS had a tough year. The stock lost 86 percent of its value, mainly due to a lack of profitability. With this Bitcoin investment, the company wants to move in a new direction.

MicroStrategy, the great example for many companies with a Bitcoin strategy, now holds 386,700 BTC. These reserves are currently worth about $37 billion.