Nilam Resources, a South American gold mining company, has announced its plans to acquire 24,800 Bitcoins, valued at approximately $1.7 billion, through a press release dated March 26.
The acquisition involves the issuance of a new Preferred Class of Series C Stock in exchange for the Bitcoin, at a rate below the current market value.
The strategic move aims to take full ownership of MindWave, a special-purpose entity based in Mauritius designated to hold digital assets, including Bitcoin, as collateral. These assets will bolster the company’s capacity to secure capital for investment in high-yield projects.
The CEO of Nilam Resources, Pranjali More, acknowledged the team’s efforts in the past months towards reaching this significant milestone. More emphasized the thorough preparation, including the finalization of agreements and due diligence, culminating in a legally binding Letter of Intent (LOI) with Xyberdata Ltd.
More also highlighted the company’s dedication to principles of transparency, innovation, and sustainability, underlining a commitment to a future of inclusive and sustainable finance.
The acquisition agreement stipulates that MindWave will become a subsidiary of Nilam Resources. Shareholders of MindWave are set to receive the newly issued Preferred Shares (Class C) in return for their equity interest, featuring conversion rights upon listing on NASDAQ or during other liquidity events, classified as “restricted securities.”
Keshwarsingh Nadan, director of Xyberdata Ltd., praised the collaborative effort, highlighting the opportunity to work alongside prominent figures in fintech.
“This Letter of Intent (LOI) allows our team to work in unison with some of the best minds in Fintech. The Xyberdata Ltd. team has a proven track record of strategic partnerships, acquisitions, and continued support [for] innovation [in] the industry,” said Nadan.
This development places Nilam Resources alongside notable corporations like MicroStrategy, which have invested heavily in Bitcoin, the leading cryptocurrency.
The announcement comes at a pivotal time for Bitcoin, which has recently begun to recover from a downturn. Following historic highs, Bitcoin’s value adjusted, cooling off from its rapid ascent. However, the endorsement from another major entity is poised to further energize Bitcoin’s market presence, particularly with an investment surpassing the $1 billion mark.
Source: https://crypto.news/gold-mining-firm-nilam-resources-to-acquire-24800-btc-in-1-7b-deal/