Shares of the SOS Limited stock continued to rise in the pre-market today after gaining as much as 10.88% at the previous closing. SOS stock price saw a surge of 13.80% today to reach $3.71 a share at the time of this writing. Though certain law firms have filed a class-action lawsuit against SOS Limited, it seems that rebound in the cryptocurrencies has pushed SOS stock to move high. Let’s understand deeply the current scenarios.
SOS Limited is a data mining and data analysis company based in the People’s Republic of China. The recent huge decline in the world’s largest crypto currency bitcoin due to unexpected actions by some influential persons and new restrictions in China has punished many stocks in which SOS Limited is also included. At one point, the price of the Bitcoin collapsed to $30,001.51 but then again surpassed 40,000 on Wednesday before moving back to 39,335.375as of this writing. This rebound in Bitcoin might be the reason why SOS stock is going high in pre-market today. But it should be taken into consideration that the whole business of SOS stock is not limited to Bitcoin as its 98% revenue in 2020 came from insurance marketing.
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Estimates show that 65% of Bitcoin mining happens in China and due to increased cryptocurrency regulations in payment, trading and mining would certainly affect the mining companies like SOS Limited. However, SOS limited would only feel the heat in its Bitcoin mining area while the rest of the business is growing with time.
Filing of Class Action Lawsuit:
Many law firms have recently filed a class-action lawsuit against SOS Limited and its certain officers due to alleged violation of federal security laws, on behalf of shareholders of the SOS stock who purchased SOS American depository shares between July 22, 2020, and February 25, 2021, both dates inclusive. The law firms alleged that SOS stock made misleading statements related to its principal executive offices, purchased mining rigs, and many other operational areas due to which its public statements are misleading the individuals at relevant times.
SOS stock price continuing the rising momentum in the stock market despite the filing of Class Suit action by many law firms against it. It seems that the recent bounce back in Bitcoin price is making the SOS stock perform high.