SOS Limited (NYSE:SOS) Stock Continues to Trade Lower: Time To Buy?
4:38 pm Friday, September 03rd, 2021
Over the past months, the cryptocurrency space had been in the middle of a slump. However, the sector has made a strong comeback in recent weeks and many of the world’s leading cryptocurrencies are on the up again. The rally in cryptocurrencies is going to make crypto mining more lucrative and hence, that brings fresh attention to stocks of companies like SOS Limited (NYSE:SOS) which are involved in the crypto mining sector.
The company, which is based out of China, is involved in the Bitcoin mining space but at the same, it is also necessary to keep in mind that SOS Limited is involved in a wide range of businesses in addition to crypto mining. Some of those businesses include big data services, cloud computing, and rescue insurance among others.
That being said, considering the fact that the company’s operations are located in China, the whole situation remains opaque and there is no way for investors to know even if its mining rigs are functional or not. On the other hand, back in 2019 SOS had also changed its auditors and one of its auditors had earlier expressed troublesome opinions with regards to its finances.
In this sort of situation, it goes without saying that the SOS Limited stock makes for a pretty risky bet for investors. In addition to that, the company’s stock has also had a lot of dilution. Hence, it remains to be seen if the current excitement powered by the crypto rally is sustained or not.
