SOS Installs Second Batch of 5,000 Cryptocurrency Miners and Gives First Quarter Mining Projections
SOS Limited (NYSE: SOS) announced the installation of its second fleet of 5,000 cryptocurrency mining rigs, joining the initial fleet for a total capacity of 353 Peta-Hashes per second for Bitcoin and 707 Giga-Hashes for Ether. The company has successfully mined its first Bitcoin and anticipates generating at least 41 Bitcoins and 909 ETH in Q1 2021. An independent review has confirmed the company's control over mining outcomes. However, uncertainties remain regarding cryptocurrency regulations, mining costs, and operational risks.
- Successful installation of 5,000 cryptocurrency mining rigs, totaling 10,000 rigs.
- First Bitcoin mined, marking a significant operational milestone.
- Projected earnings of at least 41 Bitcoins and 909 ETH in Q1 2021, indicating strong output potential.
- Operational risks related to cryptocurrency mining, including downtime and maintenance.
- Uncertainties with cryptocurrency regulations from the Chinese government.
- Potential increases in operating expenses due to power supply issues.
QINGDAO, China, March 15, 2021 /PRNewswire/ -- SOS Limited (NYSE: SOS) (the "Company" or "SOS") announced today that it has successfully installed its second fleet of 5,000 cryptocurrency mining rigs. Together with its prior fleet of 5,000 mining rigs, the Company expects the combined fleet to have the capacity to calculate an average of 353 Peta-Hashes per second (PH/s) for mining Bitcoin and 707 Giga-Hashes per second (GH/s) for mining Ether (ETH). These hash rates are subject to numerous factors, including down time for maintenance, reconfiguration and other variable factors that may materially impact computing performance in the future.
The Company also announced that on February 24, 2021, it was awarded its first Bitcoin from successful mining activities. SOS Chairman Yandai Wang commented, "This is a significant milestone for our Company. To memorialize this event, SOS is creating a commemorative gold coin that will serve as a tangible representation of our first mined Bitcoin. We anticipate that this will be the first of many future mining successes, as we continue to execute our cryptocurrency mining strategy."
The Company's board of directors also commissioned an independent review of the Company's cryptocurrency mining activities. As part of the review, payments from multiple mining pools were traced to SOS through the public Bitcoin and ETH blockchain ledgers. The review also validated SOS's control over certain electronic wallets and that the rate of Bitcoin and ETH payouts received in those wallets was generally consistent with the expected productivity of the Company's deployed fleet based on its hash rate capacity.
The Company expects to generate at least 41 Bitcoins and 909 ETH in the first quarter of 2021, based on various assumptions relating to down time for its fleet, worldwide hash power and other operating conditions. SOS Chief Financial Officer Steven Li elaborated, "These expected mining results reflect only a partial quarter of operations, since our current fleet of mining rigs was only recently installed during the first quarter. Our output should grow in future quarters as we receive and install our third batch of mining rigs and have a full quarter of operations for our current rigs."
These mining results do not include any financial results for the Company and do not address the Company's other, non-mining operations, such as the Company's marketing data, technology and solutions for emergency rescue services. United States generally accepted accounting principles for cryptocurrency mining are complex, emerging and uncertain. Cryptocurrencies may not be recognized as cash or cash equivalents, and mining activities may not qualify for revenue recognition. Cryptocurrencies have no inherent value, are not legal tender recognized by any governmental entity, and might not be able to be converted into fiat currencies. Investors are advised not to place undue reliance on mining results alone, without considering other financial and non-financial metrics.
About SOS Limited
SOS is a high-technology company providing a wide range of services to its corporate and individual members, including marketing data, technology and solutions for emergency rescue services. Recently, SOS began rolling out its cryptocurrency mining business and plans to develop insurance and security management solutions for digital assets and cryptocurrencies. SOS transforms digital technology into data-driven operations through research and development of big data, cloud computing, Internet of Things, blockchain and artificial intelligence. The Company created an SOS cloud emergency rescue software-as-a-service (SaaS) platform with three major product categories: basic cloud (medical rescue card, car rescue card, financial rescue card, mutual assistance rescue card), cooperative cloud (information rescue center, intelligent big data, intelligent software and hardware), and information cloud (News Today, E-Commerce Today). The Company's corporate clients include 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. 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 first 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 crypto currency 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
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