- Nilam Resources announces intent to make massive Bitcoin buy.
- The BTC acquisition involves complex accounting and legal moves.
- It is uncertain whether the company can follow through.
MicroStrategy’s bold Bitcoin acquisition strategy is paying off handsomely as the company’s market value surges in lockstep with BTC’s meteoric rise. Little-known firm Nilam Resources looks set to follow in MicroStrategy’s footsteps, unveiling an audacious plan to acquire 24,800 BTC, yet the announcement has been met with intense skepticism.
Nilam Bitcoin Buy Draws Scrutiny
The grand ambitions outlined by Nilam have been met with deep skepticism on whether the company can pull off a 24,800 Bitcoin purchase. Crypto investor Mike Alfred mocked the announcement by revealing his own letter of intent to acquire 24,801 BTC with disclaimers about contingencies. “I drafted the LOI myself a few minutes before this tweet,” Alfred cheekily added.
In a further blow to the announcement, former tech worker Vivek S noted the firm allegedly has just three employees per Bloomberg data, a different CEO than listed on the press release, and no official website. “Seems like a pump and dump effort,” Vivek concluded. However, Nilam Resource’s website showed that it is an investment firm focused on the “Medtech, Fintech and Climatetech” fields.
Sponsored
Several market watchers accused Nilam of attempted manipulation, speculating that the BTC announcement was an effort to falsely spark a surge in the company’s stock price. “Maybe they saw the price spiking and wanted people to falsely attribute it to their fake announcement, which they’d later reveal to be bunk,” tweeted GodAlmaxi.
While doubts swirl around Nilam’s Bitcoin claims, the company’s press release gave details of its audacious acquisition plan.
Nilam Going Big
According to Nilam’s press release, the company has entered into a letter of intent to acquire 24,800 Bitcoin at a discounted rate, valued at over $1.7 billion based on the current BTC price. The BTC will be held by a newly created special purpose entity called MindWave based in Mauritius, which Nilam intends to acquire 100% ownership of MindWave.
Sponsored
In exchange for acquiring MindWave, Nilam will issue a new class of Preferred Stock Series C shares to MindWave’s current shareholders. Nilam stated that its goal is to use the assets held in MindWave to raise capital for investments in “high yield generating projects.”
The letter of intent was signed with Xyberdata Ltd, which Nilam described as having “a proven track record of strategic partnerships, acquisitions and continued support innovation for the industry.”
On the Flipside
- Questions remain about where the funding would come from for Nilam to purchase this massive BTC stake and why the seller would give a discount.
- The use of a special-purpose vehicle in Mauritius to hold BTC adds complexity and potential risks around transparency.
- In 2017, shares in soft drinks firm Long Island Iced Tea Corp quadrupled after it changed its name to Long Blockchain Corporation and stated it was focusing on blockchain’s benefits.
Why This Matters
The stakes are high with Nilam’s purported Bitcoin play. If legitimate, it would represent one of the largest ever corporate investments in the cryptocurrency sector from an extremely unlikely source. However, if unfounded or manipulative, it could damage credibility in blockchain markets and underscore risks around volatile assets.
Bitcoin ETF outflows stem as BTC recovers recent losses. Read more here:
Bitcoin ETFs Pause Five-Day Outflow Trend as BTC Reclaims $70K
Cardano Girls blow up on socials, putting the spotlight on the project’s marketing efforts. Read more here:
Success of Cardano Girls Puts Firm’s Marketing Woes in Focus
