Nilam Resources, a gold mining company, set to purchase 24,800 BTC worth $1.7 billion in a landmark agreement.
Nilam Resources, a gold mining company headquartered in South America, has revealed its ambitious plan to acquire 24,800 Bitcoins, amounting to approximately $1.7 billion. This announcement was made in a press release on March 26.
The acquisition will involve the issuance of a new Preferred Class of Series C Stock in exchange for the Bitcoin, but at a rate lower than the current market value. The primary objective of this strategic move is to gain complete ownership of MindWave, a special-purpose entity based in Mauritius that holds 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 her appreciation for the team’s efforts in achieving this significant milestone. She emphasized the meticulous preparations, including the finalization of agreements and due diligence, that culminated in a legally binding Letter of Intent (LOI) with Xyberdata Ltd. More also highlighted the company’s commitment to transparency, innovation, and sustainability, underscoring their dedication to a future of inclusive and sustainable finance.
According to 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 they will be classified as “restricted securities.”
Keshwarsingh Nadan, the director of Xyberdata Ltd., commended the collaborative effort and acknowledged the opportunity to work alongside prominent figures in the fintech industry. “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 puts Nilam Resources in the company of notable corporations like MicroStrategy, which have made substantial investments in Bitcoin, the leading cryptocurrency.
The timing of this announcement is crucial for Bitcoin, as it has recently begun to recover from a downturn. Following its historic highs, Bitcoin’s value experienced a correction, cooling off from its rapid ascent. However, the endorsement from another major entity is expected to further invigorate Bitcoin’s presence in the market, especially with an investment exceeding the $1 billion mark.
