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- SOS announces a joint venture with Qingdao Ronghe Finance.
- Stock price rises in early trading up 2% on Monday but struggle for momentum.
- SOS shares have a strong retail following with volatile moves.
SOS shares are trading lower on Monday following the company announcing a joint venture deal. Immediately post the announcement SOS shares traded up to $6.38, but have since fallen back below $6. SOS Information Technology, a subsidiary of SOS, is to enter into a joint venture with Qingdao Ronghe Finance. The joint venture will be called SOS Ronghe Digital Technology Ltd with the new company receiving its business license on March 27.
SOS is a Chinese company involved in providing cloud-based emergency services to businesses and individuals. SOS provides information security solutions for emergency roadside assistance, emergency healthcare, and emergency living assistance. SOS also has an involvement in the cryptocurrency mining business and this has captured obvious retail enthusiasm.
SOS stock news
SOS has been on the radar for retail traders in 2021 as the company entered the cryptocurrency mining space. The sector has seen much investor enthusiasm in line with the rising price of bitcoin and other cryptocurrencies.
Feb 11 saw the bullish fever really take hold as SOS Ltd jumped nearly 60%. This was likely on the back of an announcement made by SOS Ltd on February 9 that it had received 5,000 pieces of mining rigs for cryptocurrency. SOS Chairman Yandai Wang commented, “we have secured supply of crypto mining equipment that is expected to generate sufficient crypto hash power to allow us to promptly capture the rising cryptocurrency price.”
Later in February, SOS was the subject of two bearish articles by Culper Research and Hindenberg Research. SOS rebutted these arguments and subsequently, Scorpio VC issued a bullish research piece.
All this contrasting information ensured volatility remained elevated in SOS shares. SOS fell from nearly $16 to $4.21 in a few days in mid-February before then rallying back to $9.25 a few sessions later. Clearly not one for the faint hearted!
Recent developments have seen SOS announce it has installed a second batch of crypto mining machines and gave an outlook that it expected to mine at least 41 bitcoins and 909 etherum in Q1 2021.
On March 29, SOS announces a joint venture with Qingdao Ronghe Finance. The new company will have registered capital of $9.2 million with SOS contributing 51% and Ronghe the other 49%. The aim of the joint venture is to establish a supercomputing centre.
Shares in SOS have struggled to hold early gains and have just slid back under $6 on Monday, currently down 2%.
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