SOS Ltd. Launches 6,039 Mining Rigs as it Scales Up Cryptomining Operations

Rhea-AI Summary

SOS Limited (NYSE: SOS) announced the operational launch of 6,039 mining rigs, including 575 Ethereum rigs and 5,464 Bitcoin rigs, enhancing its mining capacity. The total expected output now stands at approximately 527 PH/s for Bitcoin and 1,456 GH/s for Ethereum, with over 90% of energy sourced from renewables. CEO Yandai Wang expressed optimism about the company's growth trajectory in the cryptocurrency sector, emphasizing sustainable practices and strategic expansion. However, the operational success hinges on various factors, including maintenance and market trends.

Positive

• Launched 6,039 mining rigs, boosting operational capacity significantly.
• Total expected output is 527 PH/s for Bitcoin and 1,456 GH/s for Ethereum.
• Over 90% of energy for mining operations is sourced from renewable energy.

Negative

• Operational performance may be impacted by maintenance and variable factors.
• Cryptocurrency mining operations are still under development with uncertainties.
• Risks related to power access and increasing operational expenses.

QINGDAO, China, May 18, 2021 /PRNewswire/ -- SOS Limited (NYSE: SOS) (the "Company" or "SOS") announced today that 6,039 mining rigs received over the past month have all been put into operation, including a batch of 575 Ethereum (ETH) mining rigs received on May 7, 2021, and another batch of 5,464 rigs from the third and final installation of our rig purchase received in April.

The 575 ETH rigs are expected to generate approximately 400 GH/s and the 5,464 rigs are expected to generate an aggregate of approximately 177 PH/s for mining Bitcoin (BTC) and 356 GH/s for mining ETH.

Currently, across all mining fleet operations, SOS' total capacity is expected to generate approximately 527 PH/s for mining BTC and 1,456 GH/s for mining ETH. SOS currently gets over 90% of its energy for mining operations from renewable sources.

If the mining operations perform as expected and the  long-term price trends of applicable cryptocurrencies continue, the return on investment (ROI) is projected to be promising. 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.

Mr. Yandai Wang, CEO of SOS, commented, "With the completion of Phase I of the Leibodong mine and continued expansion of our mining fleet, we are pleased with the progress on our digital currency business plan, based on blockchain technology. The launch of our mining business has provided valuable experience to our team, and is expected to be an important driver of growth in 2021 and beyond."

About SOS Limited

SOS is an emerging marketing and solution provider based on blockchain and big data drive. It has about 20 million members in China. In July 2020, the headquarters of SOS moved from Gui'an new area to Qingdao West Coast new area. Recently, SOS has outlined its strategy in blockchain and cryptocurrency, including a series of measures to expand its business to cryptocurrency mining, cryptocurrency security and insurance and digital asset exchange. 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 3 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 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

FAQ

What is the total expected hash rate for SOS's mining rigs?

SOS's mining rigs are expected to generate approximately 527 PH/s for Bitcoin and 1,456 GH/s for Ethereum.

When were the 6,039 mining rigs launched by SOS?

The 6,039 mining rigs were launched on May 18, 2021.

What percentage of energy used for SOS's mining operations is renewable?

SOS sources over 90% of its energy for mining operations from renewable sources.

What are the potential risks of SOS's cryptocurrency mining operations?

Risks include operational performance issues, power access challenges, and fluctuations in operational costs.

How many Ethereum and Bitcoin mining rigs did SOS launch?

SOS launched 575 Ethereum rigs and 5,464 Bitcoin rigs.