Stock price of Chinese company doubles as they decide to start buying Bitcoin
Last Updated on 29 November 2024 by CryptoTips.eu
In each of the three largest economies in the world, there is now a stock-quoted company that has a very simple business plan: buy as much Bitcoin as possible. In the United States it is Michael Saylor’s MicroStrategy, in Japan it is MetaPlanet and in China they now have cloud-computing company SOS Ltd (which is also listed on the US stock exchange). They announced a new strategy on Wednesday, namely purchasing as many Bitcoins as possible.
Investors liked the message and sent the stock 97% higher within the hour. After profits were taken SOS ended with only an 84% increase for the day but the tone was clearly set.
Saylor
It is pretty much the ultimate company comeback. MicroStrategy was once referred to as the company that lost the most value during the DotCom crisis from 1999 to 2001.
Michael Saylor, now the hero of many crypto fans, was blamed by the business press at the time. The man who once lost 6 billion in stock market value stayed on as CEO and pulled his team out of the swamp.
Ever since 2020, his company, which at the time sold consultancy software and had McDonalds as a customer, went into a different direction. Saylor believed strongly in the story surrounding Bitcoin and started purchasing it with all the company funds at his disposal.
That looked very bad in 2022 when Bitcoin dropped to a value of $16,000 when FTX went bankrupt (and MicroStrategy had purchased Bitcoins for an average value of $30,000), but in 2024 it turns out to have been a genius move.
This year, MicroStrategy’s share price rose by about 500% and its strategy is now being copied in other countries as well. In Japan, MetaPlanet’s stock has already gone up 1,300% since January 1st and in China, thanks to SOS Ltd, you now also have a chance to see what a Bitcoin business strategy can do for a share.
