SOS Limited (SOS) Announces Receipt of the Third Batch of Crypto Mining Rigs and First Quarter Mining Results

April 14, 2021 9:12 AM EDT

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SOS Limited (NYSE: SOS) (the "Company" or "SOS") announced the receipt of the previously announced, third batch of 5464 cryptocurrency mining rigs.

Immediately upon delivery of the mining rigs, the SOS team kicked off inspection, configuration and installation procedures. Once this batch of mining rigs go live, the Company expects that the pool of rigs will be able to generate about 177 Peta-Hashes per second (PH/s) for mining Bitcoin and 356 Giga-Hashes per second (GH/s) for mining Ethereum (ETH). If the machines operate as expected, the long-term ROI (return on investment) 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.

The Company confirms mining operations in Q1 2021, have generated 42 Bitcoins and 916 ETH. This is for a partial quarter of operation. SOS Chief Financial Officer Steven Li elaborated, "These mining results reflect the first quarter of operations, and the number of Bitcoins and Ethereum are higher than what we originally anticipated. We expect our output to grow in future quarters as we complete the installation of our third batch of mining rigs and have full quarters of operation."

These mining results do not include any financial results for the Company and do not address the Company's other, non-mining operations, such as the Company's marketing data, technology and solutions for emergency rescue services. United States generally accepted accounting principles for cryptocurrency mining are complex, emerging and uncertain. Cryptocurrencies may not be recognized as cash or cash equivalents, and mining activities may not qualify for revenue recognition. Cryptocurrencies have no inherent value, are not legal tender recognized by any governmental entity, and might not be able to be converted into fiat currencies. Investors are advised not to place undue reliance on mining results alone, without considering other financial and non-financial metrics.

Mr. Yandai Wang, Chairman of SOS, commented, "We believe that the general trend for cryptocurrencies will be bullish. We have completed the set-up of the cryptocurrency business in China at this stage. With the anticipated development of our cryptocurrency mining operation in the U.S., we believe that SOS' cryptocurrency business will achieve significant results. We remain confident in our strategy to invest in crypto-currency operations.

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