It would be inaccurate to say that a position in SOS Limited (NYSE:SOS) is exactly the same as owning cryptocurrency. Yet there’s definitely a connection between crypto and SOS stock.
There may be merit to this assertion. And if there is indeed potential for cryptos to rebound, then that should be bullish for SOS stock. After all, the company is a premier cryptocurrency miner.
And when I reveal its latest mining rig count, you might be alarmed — or impressed — and even take a long position in SOS stock.
SOS Stock at a Glance
There’s no denying that life was good for SOS stock holders in mid-February. During that time, its share price soared to a 52-week high of $15.88. This occurred while Bitcoin, Ethereum and other major cryptocurrencies were on the rise. Of course, the correlation isn’t just a coincidence.
Yet while SOS stock tracked crypto prices, its moves were leveraged. The February rally from $2.80 to nearly $16 was a sight to behold — even crypto traders should be impressed by it.
Fast-forward to the summer of 2021, and cryptocurrency prices retraced to the downside. Bitcoin even dipped below the all-important $30,000 level, though a rebound commenced in late July.
Meanwhile, SOS stock offered prospective investors a more favorable entry point during the summer. In late July, the stock settled around $2.60.
There’s compelling value here, as SOS stock’s trailing 12-month price-to-earnings ratio is 26.02. That’s quite reasonable and shows that a lower price can bring a rare bargain in the markets.
SOS Is Scaling Up Its Mining Power
If you’re going to invest in a cryptocurrency miner, why not pick one with awesome hash power? Naturally, I’m referring to SOS Limited, which is one of the most ambitious crypto miners out there.
Not long ago, the company announced that it’s scaling up its mining operations. These numbers can help SOS leave the competition behind:
6,039 mining rigs were received in the span of a month, all of which have been put into operation
575 Ethereum rigs should generate approximately 400 GH/s
5,464 rigs are expected to generate a total of about 177 PH/s for mining Bitcoin and 356 GH/s for mining Ethereum
The fleet’s total capacity should generate roughly 527 PH/s for mining Bitcoin and 1,456 GH/s for mining Ethereum
Plus, you can check the “environmentally friendly” box — SOS Limited uses more than 90% renewable energy for its mining operations.
A Blockchain-Powered Partnership
Even an aggressive cryptocurrency miner can’t do everything alone. That’s where a key collaboration can make a difference. To accelerate its blockchain operations into the U.S., SOS Limited is partnering with New Jersey-based Niagara Development LLC.
Together, the two companies will carry out crypto mining operations. They also plan to construct an international standardized Digital Super Computing Custody Operation Center.
For its part, SOS Limited will be responsible for the management, operations and financing of the joint venture. Niagara Development will provide up to 150 megawatts of electricity, and fortunately, this will include electricity generated from renewable sources. It will also construct the aforementioned operating center.
It sounds like Niagara is doing a lot of the heavy lifting in this arrangement. But then, is that such a bad thing? Not really — especially if you’re investing in SOS Limited.
The Takeaway on SOS Stock
There’s nothing wrong with investing directly in Bitcoin, Ethereum or other well-known cryptocurrencies. However, SOS stock offers indirect exposure to the world of crypto and has powerful leverage.
This could be a good time to check out the stock and buy some shares. It’s an easy way to add firepower to your portfolio and reap the rewards as the company massively scales up its mining operations.
On the date of publication, neither Louis Navellier nor the InvestorPlace Research Staff member primarily responsible for this article held (either directly or indirectly) any positions in the securities mentioned in this article.
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