SOS Enters into a Purchase Agreement for 575 Cryptocurrency Mining Rigs

Rhea-AI Summary

SOS Limited (NYSE: SOS) has announced an agreement to purchase 575 cryptocurrency ETH mining rigs, which will provide approximately 400 GH of ETH hash rate. The delivery is expected around April 30, 2021. This acquisition aligns with SOS's strategy to enhance its cryptocurrency mining capabilities during a global equipment shortage. CEO Yandai Wang expressed optimism about cryptocurrency and Ethereum, viewing this as a vital step for the company's growth in 2021 and beyond.

Positive

• Acquisition of 575 ETH mining rigs to enhance mining capacity.
• Expected hash rate of approximately 400 GH.
• Strategic move during a global mining equipment shortage.

Negative

• Risks of operational disruptions due to potential failures in data facilities.
• Dependence on the availability of power at reasonable costs.
• Potential regulatory challenges from the Chinese government regarding cryptocurrency operations.

QINGDAO, China, April 20, 2021 /PRNewswire/ -- SOS Limited (NYSE: SOS) (the "Company" or "SOS") announced today that the company has entered into an agreement to purchase 575 cryptocurrency ETH mining rigs. Under the terms of the agreement, the Company is expected to obtain approximately 400 GH of ETH hash rate. The mining rigs are expected to be delivered on or about April 30, 2021. 

This purchase is another step in implementing SOS' cryptocurrency mining strategy. The Company is pleased it has been able to secure mining capacity during this global mining equipment shortage.

Mr. Yandai Wang, CEO of SOS, commented, "we are optimistic about the future of cryptocurrencies and Ethereum in particular. This is part of our overall strategy to develop blockchain-based environments and services and which will be a core part of our growth in 2021 and beyond".

About SOS Limited

SOS is an emerging blockchain-based and big data-driven marketing and solution provider as well as cryptocurrency mining operator. The core infrastructure of SOS' marketing data, technology and solutions to insurance and emergency rescue services is built on big data, blockchain-based technology, cloud computing, AI, satellite, and 5G network, etc. SOS has created a cloud "software as a service (SaaS)" platform for emergency rescue services, with three major product categories: basic cloud, cooperative cloud, and information cloud. This system provides innovative marketing solutions to clients such as insurance companies, financial institutions, medical institutions, healthcare providers, auto manufacturers, security providers, senior living assistance providers, and other service providers in the emergency rescue services industry.

SOS has obtained a national high-tech enterprise certification and the title of "Big Data Star Enterprise," awarded by Gui'an New District Government. Staying on the forefront of digital technology innovation, the Company has registered 99 software copyrights and 2 patents. For more information, please visit: http://www.sosyun.com/ .

Forward-Looking Statements

Certain statements in this press release may constitute "forward-looking statements" within the meaning of the federal securities laws, including, but not limited to, our expectations for future financial performance, business strategies or expectations for our business. These statements constitute projections, forecasts and forward-looking statements, and are not guarantees of performance.  SOS cautions that forward-looking statements are subject to numerous assumptions, risks and uncertainties, which change over time. Words such as "may," "can," "should," "will," "estimate," "plan," "project," "forecast," "intend," "expect," "anticipate," "believe," "seek," "target," "look" or similar expressions may identify forward-looking statements. Specifically, forward-looking statements may include statements relating to the Company's:

• expected hash rate for its mining rigs;
• expected mining results for the second quarter of 2021;
• intention to grow and install more mining rigs;
• ability to execute its business plan;
• changes in the market for SOS' products and services; and
• expansion plans and opportunities.

These forward-looking statements are based on information available as of the date of this press release and our management's current expectations, forecasts and assumptions, and involve a number of judgments, risks and uncertainties that may cause actual results or performance to be materially different from those expressed or implied by these forward-looking statements.

These risks and uncertainties include, but not are limited to, the risk factors described by SOS in its filings with the Securities and Exchange Commission ("SEC"). These risk factors and those identified elsewhere in this press release, among others, could cause actual results to differ materially from historical performance and include, but are not limited to:

SOS's cryptocurrency mining, security and insurance businesses are still under development, with many uncertainties in research of relevant technologies;

• failure to access a large quantity of power at reasonable costs could significantly increase SOS operating expenses and adversely affect our demand for SOS's mining machines;
• shortages in, or rises in the prices of mining machines may adversely affect the Company's business;
• any significant or prolonged failure in the data warehouse facilities and data mining facilities that SOS operates or services it provides, including events beyond its control, would lead to significant costs and disruptions and would reduce the attractiveness of its facilities, harm its business reputation and have a material adverse effect on its results of operation;
• security breaches or alleged security breaches of our data warehouses could disrupt SOS operations and have a material adverse effect on its business, financial condition and results of operation; and
• Chinese government's policies and regulatory oversight of cryptocurrency mining operation;
• other risks and uncertainties indicated in SOS's SEC reports or documents filed or to be filed with the SEC by SOS.

Accordingly, forward-looking statements should not be relied upon as representing our views as of any subsequent date, and you should not place undue reliance on these forward-looking statements in deciding whether to invest in our securities. We do not undertake any obligation to update forward-looking statements to reflect events or circumstances after the date they were made, whether as a result of new information, future events or otherwise, except as may be required under applicable securities laws.

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SOURCE SOS Limited

FAQ

What is the significance of SOS Limited's recent purchase of ETH mining rigs?

The purchase of 575 ETH mining rigs is significant as it enhances SOS Limited's mining capacity, which is crucial for its growth strategy in the cryptocurrency market.

When is SOS Limited expected to receive the mining rigs?

SOS Limited is expected to receive the 575 ETH mining rigs around April 30, 2021.

How much hash rate will SOS Limited achieve from the new mining rigs?

The new mining rigs are expected to provide approximately 400 GH of ETH hash rate.

What challenges could impact SOS Limited's cryptocurrency mining operations?

Challenges that could impact operations include potential power shortages, increases in mining equipment prices, and regulatory oversight from the Chinese government.

What is the strategic importance of cryptocurrency mining for SOS Limited?

Cryptocurrency mining is strategically important for SOS Limited as it aims to develop blockchain-based services and solutions, contributing to the company's growth.