Today, traders in SOS Limited (NYSE:SOS) and SOS inventory are seeing beneficial properties of roughly 6% on the time of writing.
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Indeed, SOS has been a extremely unstable inventory of late. There’s been rather a lot occurring with this title. A surge in investor curiosity associated to the spike in cryptocurrency values drove immense consideration to crypto mining performs like SOS.
However, Chinese-based shares like SOS have been dropping momentum. Delisting concerns in addition to extremely tense U.S.-China relations have offered robust headwinds.
Additionally, a really robust brief thesis from Hindenburg Research has poured a bucket-load of chilly water on this inventory. I’d suggest traders try the sequence of tweets launched by Hindenburg for extra info on this matter. Bottom line: There’s some fairly bearish sentiment on the market on SOS.
Today although, SOS traders are lastly basking in some excellent news.
Let’s dive into the announcement that’s sending shares increased immediately.
SOS Stock Higher on Mining Rig Announcement
Today, SOS announced it has entered into an settlement to buy 575 mining rigs. These rigs are meant for use for Ethereum (CCC:ETH-USD) mining. Given how Ethereum costs are doing immediately, it seems this announcement was well-timed. Accordingly, this inventory appears to have life immediately.
Whether or not it is a dead-cat bounce stays to be seen. However, SOS has been making various such bulletins of late. If these bulletins are to be believed, SOS is positioning itself as one of many largest crypto miners in the world.
For these searching for excessive leverage to the crypto area, SOS inventory is among the many greatest methods to take action.
However, I’d prefer to warning readers on the speculative nature of cryptocurrencies and the miners underpinning this rally. Stocks like SOS are extraordinarily dangerous not solely as a result of inherent speculative nature of this sector, however the aforementioned headwinds with this inventory immediately. Accordingly, these in this inventory will wish to apply correct self-discipline in sizing positions.
On the date of publication, Chris MacDonald didn’t have (both instantly or not directly) any positions in the securities talked about in this text.
