The rapid increase in the value of cryptocurrency assets, which is predictably fueled by the overall growth of the cryptocurrency market, is beginning to improve the fortunes of many cryptocurrency services firms. Several crypto exchanges and Blockchain servicing firms have witnessed massive growth in the last few months, largely believed to be due to the increase in price value and demand for crypto assets.
SOS Limited, one of China’s Blockchain solution-based firms, is now the latest affiliate of the cryptocurrency industry to have been positively affected. Its stock prices have gone up by 200% after it announced that it would start offering cryptocurrency mining and insurance services.
SOS Limited to start Bitcoin and Ethereum mining services
The Chinese Blockchain solutions firm is now the latest in the list to see its fortunes improve after its $5 shares went up as high as $15 in less than a month. The Blockchain firm had earlier in the month received about 5,000 crypto mining machines, set to help them mine Ethereum and Bitcoin at very high and sustainable hash rates with cost-effective power.
SOS had also earlier received praises from Kevin O’Leary, a famous Canadian businessman. He believes that the nature at which the company conducts its business should be emulated by all. The author and now politician urged people to go check them out, a move that saw the Chinese Blockchain company’s fortunes plummet, as many wanted to fully understand what the star of the Shark Tank reality show was all about. The endorsement of O’Leary is not the only good thing that has recently happened to SOS Limited, as the company had recently raised about $110 million from the sales of its American Depositary Shares (ADS).
Why are stock prices going up?
The factors responsible for the soar in share prices cannot be ascertained, but investors will be happy that it took barely seven days for ADR that traded around $5 barely seven days ago, to trade above $15 today. SOS is not the only Blockchain solution company that had seen its stock rising after fully integrating into more crypto services. A few others have also witnessed such a trajectory in fortune.
Analysts believe that the rising price of Bitcoin and Ethereum will likely play a deciding role in the stocks of the shares, as they will have to cater to the needs of Bitcoin and Ethereum miners, earning incentives in the cryptocurrencies. Bitcoin had just crossed the $50K mark, while Ethereum, on the other hand, is also expected to reach the $2,000 mark soon.
Another angle of analysts’ argument drives towards the endorsement of the relatively unknown Blockchain firm by Kevin O’Leary, a social influencer typically known for promoting brands. However, many concerned with the Blockchain solutions provider will less likely be concerned with the reason why the stocks, expected to reach $20 by the end of February, are rising.