C:Ripcurrencies are booming, creating crypto-mining games like SOS Limited (SOS:) to be more attractive. Given the recent growth of Bitcoin (BTC:) և Ethereum (ETH:) to the highest of all time, this section is hot again.

However, one of the SOS shares is the one that has been significantly lower than its peers lately. The company has recently come under fire from investors for offering large shares. In addition, Chinese regulatory pressures և direct barriers are not good for Chinese crypto miners such as SOS.

As such, it is a stock that is under pressure. Of course, there are other businesses that are included in the company’s portfolio. SOS does not have to be a pure gaming crypto miner. However, this is an area where investors are very interested.

This is a company that believes in the innovation that blockchain provides. In September, the company reported a 1700% annual revenue growth through a rather impressive report. Some hyperactive investors like this small capital stock.

That said, I’m currently experiencing a decline in this stock, given all the opposition the company is facing. Let’s take a look at what these challenges are: ունի Does the company have what it takes to be a winner? (See SOS stock charts in TipRanks)

Increasing capital is not necessarily a sign of growth

As mentioned, SOS recently announced that the company has issued a rather large private placement to investors. This $ 90 million issue should provide greater growth capital to this crypto miner. However, there is an argument that this news is not as positive as it may seem at first.

This issue was implemented with 18% discount on last week’s closing price on Tuesday. That’s a pretty big discount. Thus, investors found it expedient to reduce the price of SOS shares by 30% in the middle of the week, while other crypto mining partners noticed a significant increase in valuation.

This move continues the trend of a longer-term decline in SOS. From a technical point of view, there is not much to like about this company. Yes, SOS has shown some impressive growth in the past. However, many investors are concerned about the Chinese pressures on crypto mining and the costs associated with relocating the company’s mining operations.

Lack of concentration remains a key issue

Another problem that many investors have had with this stock is the relative lack of strategic direction taken by the management team. This is a company that has changed its names, changed its common business model several times over the years.

Although SOS has apparently established itself as a crypto miner, the business in China is now unusually high risk. Accordingly, he does not like the direct leadership of this company compared to other crypto miners operating in the US or Europe.

Amazing interim report

Now for the good news. After all, there is a reason why investors prefer to put their money behind SOS shares.

This company is taking some steps lately to get more exposure in the US. The company recently developed blockchain operations in the United States through a joint venture with Niagara Worldwide. This deal could be the catalyst for a cryptocurrency in China.

The deal also comes with 150MW of electricity to support the company’s US mining operations. This is a significant step in this regard.

Moreover, there is some hope that this company will be able to get out of this mess. There is a lot of weight on SOS shares, but it is also a company that can potentially make the transition to a more sustainable business model. Only time will tell on this front.

The latest results from the company show what SOS was able to do in a relatively short time. Accordingly, there is a bull thesis that is at least understandable for this stock.

Inner line

It is true that SOS is endangered by the Chinese and US authorities. The crypto mining area is hard to come by, վերջին the recent capital increase that surprised investors certainly does not contribute to the investment thesis of this stock.

However, there are some growing arguments that need to be made about the company’s speculative growth prospects. If SOS works perfectly in its strategic axis, a rise is possible.

That said, this is most likely a stock that is too far from the risk tolerance spectrum for most investors to consider right now.

Revelation. At the time of publication, Chris MacDonald was not in any of the securities listed in this article..

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