SOS Ltd. Enters into the Purchase Agreement to Acquire 15645 Mining Rigs, BTC Hash Power 527P, ETH Hash Power 1056G

Rhea-AI Summary

SOS Limited (NYSE: SOS) announced its acquisition of 14,238 BTC mining rigs with an estimated BTC Hash Power of 527P and 1,408 ETH mining rigs with Hash Power of approximately 1056G, totaling around US$20 million. This strategic move aims to enhance its cloud cryptocurrency mining operations amid rising cryptocurrency prices. The rigs are projected to generate approximately 3.5 BTC and 63 ETH daily, equating to roughly US$206,551 in daily revenue. Shipments will occur in three phases from February to April 2021.

Positive

• Strategic acquisition of 14,238 BTC and 1,408 ETH mining rigs.
• Projected daily revenue of approximately $206,551.
• Enhances SOS's position in cloud cryptocurrency mining.

Negative

• None.

QINGDAO, China, Jan. 21, 2021 /PRNewswire/ -- SOS Limited (NYSE: SOS) (the "Company" or "SOS") announced today it has entered into a purchase agreement to procure 14238 BTC mining rigs with BTC Hash Power of approximately 527P, as well as 1408 ETH mining rigs with Hash Power of approximately 1056G as part of SOS' plan to execute its strategic plan of cloud cryptocurrency mining in pursuit of the rising cryptocurrency prices.  

SOS is an emerging blockchain-based and big data-driven marketing and service provider, with a nationwide membership base of approximately 20 million in China. Recently, SOS has outlined its strategy in blockchain and cryptocurrencies, which includes a series of initiatives to expand its business into cryptocurrency mining as well as cryptocurrency security and insurance. The core infrastructure of SOS rescue, insurance marketing and service supply chain is built on big data, blockchain-based technology, cloud computing, AI, satellite, and 5G network, etc. 

Pursuant to the purchase agreement, SOS is expected to pay approximately US$20 million to purchase 14238 PCS built with parts including the Momentum T2T 37T Double Speed, 1408 Momentum A10 Pro 780M, from HY International Group New York Inc. a seller of cryptocurrency mining rigs. The pool of prospective mining rigs will generate BTC Hash Power 527P and ETH Hash Power 1056G, once all of these mining rigs are set up in place and in operation, the pool of harsh power is projected to create roughly 3.5 BTC and 63 ETH every day, making about $206,551USD per day, based on the current cryptocurrency prices. The shipment is expected to be delivered over three time installments: (1) February 14, 2021, 5000 PCS; (2) March 14, 2021, 5000 PCS; and (3) April 15, 2021, 5646 PCS;   

SOS Chairman Yandai Wang also commented, "the price momentum of mainstream cryptocurrencies, such as BTC and ETH are currently expected to strengthen even further. Through this procurement, SOS is promptly seizing the opportunity."      

About SOS Limited

SOS Limited, through its operating subsidiary, SOS Information Technology Co., Ltd. ("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. SOS transforms digital technology into data-driven operations through the research and development of big data, cloud computing, Internet of Things, blockchain and artificial intelligence.

We have created a SOS cloud emergency rescue service software as a service (SaaS) platform with three major product categories: basic cloud, cooperative cloud, and information. 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 32 software copyrights and 2 patents. For more information, please visit: http://www.sosyun.com/ 

Forward-Looking Statements

Certain statements made herein are "forward-looking statements" within the meaning of the "safe harbor" provisions of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as "anticipate," "believe," "expect," "estimate," "plan," "outlook," and "project" and other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. Such forward-looking statements include timing of the proposed transaction; the business plans, objectives, expectations and intentions of the parties;, SOS's estimated and future results of operations, business strategies, competitive position, industry environment and potential growth opportunities market acceptance of our products; the ultimate impact of the current Coronavirus pandemic, or any other health epidemic, on our business, our research programs, healthcare systems or the global economy as a whole; our intellectual property; our reliance on third party organizations; our anticipated financial and operating results, including anticipated sources of revenues; our assumptions regarding the size of the available market, benefits of our product offering, product pricing, timing of product launches; management's expectation with respect to future acquisitions; statements regarding our goals, intentions, plans and expectations, including the introduction of new products and markets; and our cash needs and financing plans and etc. These forward-looking statements reflect the current analysis of existing information and are subject to various risks and uncertainties. As a result, caution must be exercised in relying on forward-looking statements. SOS may not realize its expectations, and its beliefs may not prove correct. Due to known and unknown risks, our actual results may differ materially from our expectations or projections. All forward-looking statements attributable to the Company or persons acting on its behalf are expressly qualified in their entirety by these factors. Other than as required under the securities laws, the Company does not assume a duty to update these forward-looking statements.

Additional information concerning these and other factors that may impact our expectations and projections can be found in our periodic filings with the SEC, including our Annual Report on Form 20-F for the fiscal year endedDecember 31, 2019. SOS's SEC filings are available publicly on the SEC's website at www.sec.gov. SOS disclaims any obligation to update the forward-looking statements, whether as a result of new information, future events or otherwise.

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SOURCE SOS Limited

FAQ

What is the significance of SOS's recent purchase agreement?

SOS's purchase agreement includes 14,238 BTC mining rigs and 1,408 ETH mining rigs, aimed at expanding its cloud cryptocurrency mining capabilities.

How much is SOS spending on the mining rigs?

SOS is expected to pay approximately US$20 million for the acquisition of the mining rigs.

When will SOS receive the mining rigs?

The shipment of the mining rigs will be delivered in three installments from February 14, 2021, to April 15, 2021.

What is the expected daily output of the new mining rigs?

The new mining rigs are projected to generate about 3.5 BTC and 63 ETH per day.

How does this acquisition impact SOS's financial outlook?

The acquisition is expected to significantly boost SOS's revenue potential, projecting around US$206,551 per day from the new rigs.