Chinese SOS Ltd to buy Bitcoin worth $50m for reserve

China-based company SOS Limited plans to leverage Bitcoin to bolster its investment portfolio and capture value from the fast-growing cryptocurrency.

SOS CEO and chairman Yandai Wang said the publicly traded firm will purchase up to $50 million in Bitcoin (BTC) as approved by its board of directors. According to Wang, SOS has a “long-term belief in Bitcoin” as a strategic asset and a global store of value.

In a press release dated November 27, it was stated that the plans to create SOS BTC reserves further demonstrate the company’s thesis, while also expanding its digital asset investments and increasing its profits.

“The performance of the Bitcoin market is strong and supported by positive developments such as the launch of various BTC-related ETF options and ongoing improvements in the US regulatory environment for digital assets.”

Yandai Wang, CEO and president of SOS

Bitcoin reserve trend

SOS Ltd. joins a growing list of firms in Asia and around the world adopting BTC as a reserve asset. Singapore-based Genius Group announced its first $120 million BTC purchase on November 12. Days later, the artificial intelligence startup strengthened its BTC treasury with another $14 million acquisition.

Metaplanet in Tokyo began buying BTC in early April as it pivoted to alternative assets. Like MicroStrategy, the organization raised capital through debt and equity sales to fund its stock. As of November 19, he held 1,421 BTC worth over $104.5 million.

There were also reports that Japanese company Remixpoint had begun allocating capital to an institutional BTC stash.

The news pointed to a growing trend for private institutions to flock to the world’s largest cryptocurrency. Michael Saylor’s MicroStrategy led the pack as the largest publicly known institutional BTC holder. Since MicroStrategy began its aggressive BTC strategy in 2020, it has spent over $21 billion buying BTC and made over $15 billion in unrealized profits.

Nation states also joined the BTC bandwagon. The United States, under the administration of President-elect Donald Trump, tried to create strategic reserves. A White House order or a proposal from Senator Cynthia Lummis in Congress could implement the policy as early as 2025.