SOS Limited (NYSE:SOS) stock is up more than 70% in intraday trading with no specific catalyst to speak of. SOS stock is seeing dramatically higher volume today, with 123 million trades and counting so far today, compared with an average daily trading volume of 11.6 million.
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SOS Limited is a tech company focused on emergency rescue services, working with healthcare providers, insurance companies and financial institutions, among others in the emergency rescue industry. SOS Limited utilizes blockchain and big data technologies to provide marketing and cloud computing services to its partners in the sector. The company also dabbles in Internet of Things and artificial intelligence.
SOS stock was up in trading on Tuesday, Feb. 9 after receiving 5,000 cryptocurrency mining computers ahead of the scheduled delivery date. This is part of the company’s wider plans in blockchain and cryptocurrency, part of which includes capturing “the rising cryptocurrency price,” according to SOS Chairman Yandai Wang.
The company also announced on Tuesday the exercise of nearly 24 million American Depository Shares (ADSs) for gross proceeds of approximately $48 million. The company said proceeds from that offering would go to developing the cryptocurrency segment of the business, plus working capital and general corporate use.
These SOS-specific catalysts come against a background of increased investing interest in cryptocurrencies, both from large-scale institutional players and from individual retail investors. On the latter front, Robinhood’s decision to restrict trading in heavily shorted stocks left many Main Street investors with a bad taste in their mouths. Increasingly mistrustful of traditional financial institutions, many are turning to cryptocurrencies and other decentralized finance plays as an alternative.
Meanwhile, on the former front, mainstream acceptance of cryptocurrencies continues to climb, with Tesla (NASDAQ:TSLA) announcing a $1.5 billion investment in Bitcoin (CCC:BTC) on Monday.
On the date of publication, Vivian Medithi did not have (either directly or indirectly) any positions in the securities mentioned in this article.