SOS Stock: Why Is Crypto Mining Play SOS Soaring 20% Today?

SOS Limited (NYSE:SOS) has transcended its sole standing as a data-driven advertising and marketing outfit. The firm is constant to ship on cloud-based advertising and marketing instruments, however the hype surrounding SOS inventory is primarily in regards to the firm’s current curiosity in blockchain expertise — significantly crypto mining. And the crypto mining arm of SOS’s enterprise is proving to be one of the vital profitable ventures the corporate has ever taken. A current earnings report is proving that at present.

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The firm discovered its footing as a supplier of Software-as-a-Service (SaaS) to varied insurance coverage, finance and healthcare firms. Since its founding, it has additionally made fairly the hassle to develop its choices with companies like commodity buying and selling. By far its most notable enterprise has been its crypto mining undertaking.

SOS made identified that it was mining crypto in February, and it’s buying forex at spectacular charges. At the inception of this venture, the corporate reported that it was reaping 3.5 Bitcoin (CCC:BTC-USD) and 63 Ethereum (CCC:ETH-USD) per day.

SOS Stock Sees Upswing After Huge Earnings Report

Today, SOS inventory is proving its crypto mining effort to be much more profitable than beforehand thought. The firm is releasing its six-month earnings report, and it’s noting a 17-fold enhance in web income over that point.

Through the top of June, the corporate’s six-month income was a whopping $184.5 million, 17 occasions better than its H2 2020 income. The firm cites its crypto mining as a big a part of this main income enhance, alongside its commodity buying and selling companies.

The firm is making traders conscious that its crypto mining capabilities are increasing as nicely. It says it has put in numerous crypto hashing rigs since manufacturing started. It additionally says its Bitcoin mining output is rising over 200% since March and its Ethereum output is rising over 100%. As of June 2021, the corporate says it has mined over 132 BTC and 1,853 ETH.

Of course, this information is doing nicely to raise the worth of SOS inventory vastly. Shares are up over 20% on the information, and buying and selling quantity is kind of excessive. Today, 40 million shares of SOS are buying and selling, as in comparison with a every day common of 12 million.

On the date of publication, Brenden Rearick didn’t have (both immediately or not directly) any positions within the securities talked about on this article. The opinions expressed on this article are these of the author, topic to the InvestorPlace.com Publishing Guidelines.

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