Chinese blockchain companies firm SOS Limited (NYSE:SOS) has been one of many best-performing crypto mining shares available in the market. SOS inventory is up a wholesome 104% previously three months, on the again of elevated brief curiosity within the safety. However, the corporate is rapidly shifting away from its meme inventory tag with investments within the crypto mining enterprise. Considering its spectacular administration group and sizeable money flows, the corporate could make a giant splash within the business.
SOS inventory is a Chinese firm that has been buying and selling on the New York Stock Exchange since 2017. It was beforehand referred to as China Rapid Finance, working a “rescue enterprise” for various corporations working in numerous segments. Despite a rising enterprise producing wholesome money flows, it was unable to achieve mainstream consideration till now. A lot of it’s right down to the euphoria surrounding the cryptocurrency house presently. Most analysts and business insiders are bullish on this pivot in its enterprise mannequin. With that being mentioned, let’s have a look at why that is the case.
Rapidly Expanding Mining Business
The major motive buyers are enthusiastic about SOS inventory is its huge crypto mining firepower which spells hassle for its competitors. Russell Krauss, the corporate’s vice chairman, has offered a number of updates about its mining enterprise.
He states that SOS presently has 10,000 crypto-miners, of which 50% are already operations and delivering Bitcoin (CCC:BTC-USD) revenues. The other 50% is currently being installed and configured. It expects a major bump in revenues when the opposite 50% of crypto-miners are operational. The third batch of roughly 5,600 miners might be in deployment quickly, which might take the tally as much as 15,600 miners. To put issues in perspective, business stalwart Riot Blockchain (NASDAQ:RIOT) has roughly 11,500 miners operational, which factors to a sizeable benefit for SOS.
Furthermore, SOS has signed a definitive agreement with an area Chinese hydropower station. It offers an affordable useful resource of renewable energy for the corporate in finishing up its mining operations. Moreover, it has a powerful relationship with the Chinese authorities, which can clean out any regulatory troubles.
It recapitalized its stability sheet earlier within the 12 months by elevating $300 million in new capital. The finance permits it to additional broaden its crypto mining operations, its legacy enterprise and spend money on its much-talked-about cryptocurrency financial services division.
There’s lots to look ahead to with SOS inventory within the months to return. Its plans to pioneer the crypto world’s monetary companies enterprise could possibly be a watershed occasion for the business. It will even solidify the corporate as probably the most highly effective crypto miner on the earth. Some of those fintech companies embody insurance coverage, crypto loans, cellular funds, crowdfunding and others.
It is hard to forecast how issues will play out contemplating the brief curiosity within the inventory when it comes to value. Short curiosity is excessive, which factors to a different squeeze that would take SOS inventory previous its 52-week excessive of $15.88. The implied volatility is engaging for short-sellers, however I really feel that it has the potential to be a long-term funding.
Final Word on SOS Stock
SOS inventory has a whole lot of momentum, and for good motive. It might turn into the largest participant within the crypto mining world by way of its good funding and management. Its crypto monetary companies division is probably going to present it an edge over rivals. Therefore, it has the potential to turn into a long-term play within the fast-growing crypto enterprise.
On the date of publication, Muslim Farooque didn’t have (both instantly or not directly) any positions within the securities talked about on this article
Muslim Farooque is a eager investor and an optimist at coronary heart. A life-long gamer and tech fanatic, he has a specific affinity for analyzing know-how shares. Muslim holds a bachelor’s of science diploma in utilized accounting from Oxford Brookes University.