SOS Stock: Why Is Crypto Mining Play SOS Soaring 20% Today?
InvestorPlace - Stock Market News, Stock Advice & Trading Tips SOS stock is swelling today as the company reports very impressive earnings. The co...
SOS Limited (NYSE:SOS) has transcended its sole status as a data-driven marketing outfit. The company is continuing to deliver on cloud-based marketing tools, but the hype surrounding SOS stock is primarily about the company’s recent interest in blockchain technology — particularly crypto mining. And the crypto mining arm of SOS’s business is proving to be one of the most lucrative ventures the company has ever taken. A recent earnings report is proving that today.
The company found its footing as a provider of Software-as-a-Service (SaaS) to various insurance, finance and healthcare companies. Since its founding, it has also made quite the effort to expand its offerings with services like commodity trading. By far its most notable venture has been its crypto mining project.
SOS made known that it was mining crypto in February, and it is acquiring currency at impressive rates. At the inception of this venture, the company 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 stock is proving its crypto mining effort to be even more lucrative than previously thought. The company is releasing its six-month earnings report, and it’s noting a 17-fold increase in net revenue over that time.
Through the end of June, the company’s six-month revenue was a whopping $184.5 million, 17 times greater than its H2 2020 revenue. The company cites its crypto mining as a large part of this major revenue increase, alongside its commodity trading services.
The company is making investors aware that its crypto mining capabilities are expanding as well. It says it has installed a number of crypto hashing rigs since production began. It also says its Bitcoin mining output is increasing over 200% since March and its Ethereum output is increasing over 100%. As of June 2021, the company says it has mined over 132 BTC and 1,853 ETH.
Of course, this news is doing well to lift the value of SOS stock greatly. Shares are up over 20% on the news, and trading volume is quite high. Today, 40 million shares of SOS are trading, as compared to a daily average of 12 million.
On the date of publication, Brenden Rearick did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
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