Why Is SOS Limited (SOS) Stock Up Today?

Today, one of the winners in the market is SOS Limited (NYSE:SOS). Soaring more than 10% in early morning trading, SOS stock is currently up by roughly 5%. This surge comes amid a broad recovery in the market, following days of selling.

Bitcoin miners in large farm. ASIC mining equipment on stand racks mine cryptocurrency in steel container. Blockchain techology application specific integrated circuit datacenter. Server room lights. SOS Stock
Source: Artie Medvedev / Shutterstock.com

Of course, this morning’s rally — following recently released CPI data — lost momentum. The market first breathed a sigh of relief from seeing inflation at 8.5% annualized (many were expecting a much higher number), but that’s still sky-high inflation. Accordingly, it isn’t surprising that SOS stock has given up some of today’s gains.

That said, SOS specifically has been on its own downtrend for some time. After being caught up in meme stock mania early last year, shares absolutely imploded. Over the past year along, the stock is down more than 90%. That’s including this recent rise.

However, today is a new day, providing SOS investors momentum nonetheless. So, let’s dive into what’s driving positive sentiment right now.

SOS Stock Climbing on Expanding Crypto Operations

In the past, Chinese blockchain technology company SOS has been a high-profile beneficiary of speculative rallies. However, with easy capital fleeing the markets, the stock has become a casualty of tightening monetary conditions.

That said, crypto investors eager on this sector appear to have reason to consider the stock right now. Specifically, the company just made a key announcement that could bring it back into focus.

The news? SOS announced the launch of a hosting hub in Wisconsin. This hub is expected to include super-computing servers which will be held within mobile smart containers. The company calls these “containerized data centers.” Currently, the initial Phase I of the center is complete, with a capacity of 5 megawatts (MW) and the hosting capabilities for four mobile containers already live. The company hopes to expand these offerings significantly over time.

In addition to this announcement, SOS also noted that it has already secured a power supply of 25MW, which will be increased to 37MW upon completion of system improvements. Power sources are incredibly important for crypto mining and computing firms. Accordingly, this deal provides a lot for investors to be excited about.

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On the date of publication, Chris MacDonald did not hold (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.

Chris MacDonald’s love for investing led him to pursue an MBA in Finance and take on a number of management roles in corporate finance and venture capital over the past 15 years. His experience as a financial analyst in the past, coupled with his fervor for finding undervalued growth opportunities, contribute to his conservative, long-term investing perspective.


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