Shares of SOS Limited (NYSE:SOS) surged greater than 30% in pre-market buying and selling on Wednesday. Targeted by quick sellers and embraced by social buying and selling aficionados, SOS inventory tipped a excessive of $15 per share in mid-February earlier than dropping to $4.77 over the following 10 days.
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SOS is a Chinese tech firm that not too long ago entered the burgeoning cryptocurrency market with its personal mining operation and blockchain providing. SOS stock got a boost on the finish of March after asserting it could establish a digital asset exchange.
The broader crypto space has roared into April with the valuation of your entire cryptocurrency market pushing over the $2 trillion mark this week. The surge was led by Bitcoin (CCC:BTC), which has held its personal market cap above $1 trillion for every week. Analysts mentioned so long as the most important crypto holds above $53,000, it is going to be capable of keep that market capitalization, Reuters reported.
Redditors Warn of SOS Stock Short Squeeze
Short curiosity in SOS inventory has reached greater than 216% of its shares shorted, in line with MarketBeat, after a rough go in recent weeks. Hindenburg Research accused management of falsifying business announcements. What as soon as was touted as an organization primarily targeted on options for emergency rescue companies, its February acquisition of 5,000 cryptocurrency mining machines created a serious rally.
In the final 24 hours, Reddit boards have been lighting up with comparisons to GameStop (NYSE:GME) and calls for brief squeeze this morning. “We will begin shopping for as many shares as we are able to get our fingers on and we are going to restrict promote these shares at or above $100,” promised one poster on an SOS-dedicated subreddit.
Meanwhile, another Redditor wrote: “SOS at present has 40% of their shares being borrowed, and eight% curiosity on these borrowed shares. We imagine this can be a prime candidate to pop, particularly after hitting a double backside. VWAP spike would technically assist us as effectively.”
On the date of publication, Robert Lakin didn’t have (both instantly or not directly) any positions within the securities talked about on this article.
InvestorPlace contributor Robert Lakin is a veteran monetary author and editor, following fintech, agtech and property tech startups.
