SOS Limited (NYSE:SOS) has shown a steady decrease even as there has been a rise in cryptocurrency prices. The reason there is a decline is the company’s lack of transparency. It is seen that SOS is a little richly valued, thanks to the business it is operating in, which is the talk of the town at the moment.
However, the investors are concerned about the opaqueness of the company’s financials. Despite issuing the report with impressive results, the investors aren’t impressed. The financial projection of SOS fails to boost the confidence of investors at the moment. A lot of the company’s potential seems to be priced in.
One factor that needs to be highlighted here is that the chip must support the appetite for bitcoin mining. There has been a serious dearth of chip supply due to pandemic, costing a bomb to telecom and automaking companies.
This shortage has prompted Inner Mongolia in China, which accounts for 8% of overall bitcoin mining, to ban any further cryptocurrency projects. Add to it, the fact that cryptocurrency projects remain under tight scrutiny in the U.S. due to a lack of regulations.