Nilam Resources, a gold mining company, set to purchase 24,800 BTC worth $1.7b in a groundbreaking agreement.
Nilam Resources, a gold mining company based in South America, has revealed its intention to acquire 24,800 Bitcoins worth about $1.7 billion, according to a press release issued on March 26.
To facilitate the acquisition, the company plans to issue a new Preferred Class of Series C Stock in exchange for the Bitcoins, at a rate lower than the current market value.
The strategic move aims to gain full control of MindWave, a special-purpose entity located in Mauritius that is responsible for holding digital assets, including Bitcoin, as collateral. These assets will enhance the company’s ability to secure capital for investment in high-yield projects.
Pranjali More, the CEO of Nilam Resources, expressed gratitude towards the team for their efforts in achieving this significant milestone. More emphasized the rigorous preparation, including finalizing agreements and conducting due diligence, which culminated in a legally binding Letter of Intent (LOI) with Xyberdata Ltd.
More also highlighted the company’s commitment to transparency, innovation, and sustainability, affirming their dedication to a future of inclusive and sustainable finance.
Under the acquisition agreement, MindWave will become a subsidiary of Nilam Resources. Shareholders of MindWave will receive the newly issued Preferred Shares (Class C) in exchange for their equity interest. These shares will have conversion rights upon listing on NASDAQ or during other liquidity events and will be classified as “restricted securities.”
Keshwarsingh Nadan, the director of Xyberdata Ltd., commended the collaborative effort and the opportunity to work alongside influential figures in the fintech industry. “This Letter of Intent (LOI) allows our team to work in harmony with some of the brightest minds in Fintech. The Xyberdata Ltd. team has a proven track record of strategic partnerships, acquisitions, and ongoing support for innovation in the industry,” said Nadan.
This development aligns Nilam Resources with notable corporations like MicroStrategy that have made substantial investments in Bitcoin, the leading cryptocurrency.
The announcement comes at a crucial time for Bitcoin, as it has recently begun to recover from a downturn. After reaching historic highs, Bitcoin’s value underwent a correction, cooling off from its rapid ascent. However, the endorsement from another major entity is expected to further invigorate Bitcoin’s market presence, especially with an investment exceeding the $1 billion mark.
