Chinese concept stock SOS invested 50 million US dollars in Bitcoin. Are Chinese listed companies buying up BTC in a big way to control the stock price?

Author: Nancy, PANews

The strategy of including Bitcoin in reserve assets is becoming popular around the world. Recently, SOS Ltd. (SOS), a company listed on the New York Stock Exchange, announced that it would purchase $50 million worth of Bitcoin. Once the news was released, its stock price soared. At the same time, as the market recognition of Bitcoin continues to increase, many listed companies in China are including Bitcoin in their reserve assets. This strategy not only optimizes the company's asset structure and brings additional income, but also largely drives the rapid rise in stock prices.

Announced a $50 million Bitcoin investment plan and has been involved in crypto mining for many years

On November 27, SOS announced that its board of directors had approved a plan to invest $50 million in Bitcoin. SOS believes that this move underscores the company's commitment to promoting its blockchain industry and consolidates the company's long-term belief in Bitcoin as a store of value and strategic asset, which will further promote the company's overall competitiveness and profitability in the field of digital asset investment.

After the announcement, SOS's stock price soared to $15.11 at the opening, then fell back, but the increase was still 42.88%. According to the official introduction, SOS provides digital technology services for emergency rescue, big data marketing, international trade, digital assets and other industries through core technologies such as AI + block technology + satellite communication + big data, providing customers with a one-stop digital overall solution. At the same time, SOS is also a multi-field company engaged in Bitcoin, cryptocurrency business and commodity trading. Its business includes cryptocurrency mining, and may expand to cryptocurrency security and insurance in the future.

In fact, SOS has been laying out crypto mining companies for many years. For example, as early as 2020, SOS announced that it would spend about $20 million to purchase 14,238 Bitcoin mining machines and 1,408 Ethereum mining machines, and it was expected to generate daily revenue of $206,000 at that time; in 2023, SOS announced that it would launch more than 5,000 self-owned mining machines in its Texas hosting center, and had signed a hosting agreement with Bitmain for a total of 6,000 mining machines, which would expire on August 20, 2025.

As for the Bitcoin investment plan, SOS explained in the announcement that Bitcoin has hit a record high and continues to attract the attention of global investors. Bitcoin is not only an important part of the digital asset ecosystem, but also has the potential to become one of the global strategic reserve assets. Combined with the current positive dynamics of the cryptocurrency market, including the US policy environment's commitment to being more friendly to digital assets and the favor of major financial institutions for Bitcoin, SOS is committed to bringing long-term value to shareholders and investors through continuous investment and technological innovation, while actively contributing to the sustainable development of the global digital economy.

In order to maximize investment returns and reduce market volatility risks, SOS plans to adopt a variety of quantitative trading strategies including investment, trading and arbitrage strategies to help the company achieve solid returns in the current market environment while further optimizing the portfolio over time.

Many Hong Kong-listed companies bought Bitcoin: long-term layout has made huge profits, and short-term entry has led to a surge in stock prices

Since the second half of this year, more and more listed companies around the world have actively included Bitcoin in their asset allocation. In particular, many listed companies in the United States and Japan have announced relevant plans to optimize their financial structure and thereby realize asset appreciation. At the same time, it has also promoted the widespread application and popularization of encrypted assets.

In addition to SOS, some Chinese listed companies have also shown strong interest and active participation. Judging from the Bitcoin holdings of the five Hong Kong-listed companies listed below, some companies have made a lot of profits through years of layout, but their stock prices have not risen significantly this year. However, some companies that announced plans to invest in Bitcoin this year have seen a significant increase in their stock prices after making large purchases of Bitcoin.

Meitu: Bitcoin holdings over the years have generated a profit of over $40 million

The United States has invested in crypto assets as early as 2021, and has not increased or sold any of them since then. According to data from BitcoinTreasuries.com, as of November 28, Meitu held 941 bitcoins, currently worth more than $89.98 million. Based on the cost price of $52,611, Meitu's floating profit exceeded $40.473 million. According to Meitu's disclosure last year, the company would consider selling cryptocurrencies at an appropriate time, but there is currently no specific disposal plan.

Market data shows that Meitu's stock price has not seen a sustained upward trend this year, and has fallen by more than 21.9% since the beginning of the year.

Boyaa Interactive: Holding more than 2,460 bitcoins, the stock price has soared more than 750% this year

Boyaa Interactive is one of the listed companies with the largest Bitcoin holdings in Asia. Market data shows that Boyaa Interactive's stock price has risen by 753.45% so far this year, setting a new high since October 2016.

According to a recent announcement by Boyaa Interactive, the company holds a total of 2,641 Bitcoins and 15,445 Ethereums, with a total holding cost of approximately $143 million, or an average cost of $54,027 per Bitcoin and $2,756 per Ethereum. Based on the latest price on November 28, Boyaa Interactive has made a floating profit of more than $165 million.

Guofu Innovation: Purchased HK$36 million worth of Bitcoin in half a year, with the highest stock price rising by more than 134%

Since Guofu Innovation announced its cryptocurrency investment plan, the Hong Kong-listed company has purchased bitcoin worth a total of about HK$36 million in the open market between March and August. Market data shows that Guofu Innovation's stock price has risen by as much as 134.7% since the March announcement.

NetDragon: Holding crypto assets for at least three years, has made a profit of 51 million yuan

NetDragon Websoft Holdings, a Hong Kong-listed company, is a global online and mobile Internet education company that has built an innovative education ecosystem with its mobile Internet technology and operational knowledge. As early as in its 2021 annual report, NetDragon disclosed that it held cryptocurrencies worth 127 million yuan. In the following years, the company once lost tens of millions of yuan. The 2024 interim report shows that the company sold a total of 290 million yuan worth of cryptocurrencies in the first half of this year, making a profit of 51 million yuan.

Market data shows that NetDragon's stock price has fallen by 19.6% since the beginning of the year, with only a brief upward trend.

Coolpad Group: BlackRock's IBIT holdings have made a profit of approximately US$2.2 million

Coolpad Group has invested tens of millions of dollars in crypto assets this year. In addition to purchasing shares in crypto mining companies, the company also invested approximately $4.03 million in 113,000 shares of BlackRock IBIT, at a price of approximately $35.64 per share. Based on the latest price of IBiT of $55.03, Coolpad's floating profit reached $2.191 million. It is worth mentioning that Coolpad's October announcement showed that the company will continue to suspend trading.