Key Points
- South American mining company, Nilam Resources, plans to acquire $1.7 billion worth of Bitcoin (BTC).
- The acquisition aligns with the company’s vision of transparency, innovation, and sustainability.
South American mining company, Nilam Resources Inc, has announced plans to acquire $1.7 billion worth of Bitcoin (BTC).
Nilam Resources’ Bitcoin Acquisition Plan
The company recently signed a Letter of Intent (LOI) with Xyberdata Ltd to purchase all of the common shares of a special purpose company named MindWave.
This company is set to hold 24,800 Bitcoin that Nilam Resources plans to acquire.
Pranjali More, Nilam Resources’ CEO, spoke about the acquisition saying, “The Company and team have been working diligently over the last several months to finalize all agreements and due diligence necessary to proceed to a legally binding Letter of Intent (LOI).”
Alongside Bitcoin, Nilam Resources will also acquire other assets belonging to Mindwave.
These assets will be used as collateral to generate money for investments in ventures that will produce large returns.
Through the acquisition, Nilam Resources will gain assets valued at more than $1 billion, coinciding with the crypto market’s current upswing and the financial community’s acknowledgment of Bitcoin as the “Gold Standard” and the direction of digital transactions.
Terms and Conditions of the Acquisition
The terms and conditions of the acquisition will be outlined in one or more final agreements.
It is projected that Nilam Resources will acquire a 100% interest in MindWave, converting it into a subsidiary.
MindWave stockholders will exchange their equity stake in the company for a new class of preferred shares (Class C) authorized and issued by NILA.
As the interest in cryptocurrencies grows in Latin America, Nilam Resources has set a record by being the first corporate entity to invest in Bitcoin as the underlying asset.
This move aligns with the company’s vision of transparency, innovation, and sustainability.
“We prioritize clear communication, embrace cutting-edge ideas, and invest in projects with enduring social and environmental impact,” noted Pranjali More, COO of Nilam.
Institutional Interest in Bitcoin
Despite Bitcoin’s increased volatility, institutional investors have not been deterred from expressing a strong interest in the cryptocurrency.
Wall Street corporations are getting more receptive to the trend of corporate investments in Bitcoin as an asset class.
This trend was started in August 2020 by the American software and business intelligence company, MicroStrategy Inc.
MicroStrategy has been steadily accumulating Bitcoin since it became its Treasury Reserve Asset (TRA).
Michael Saylor, MicroStrategy’s former CEO, disclosed earlier in the month that it acquired an additional 12,000 BTC for $68,477 per BTC.
With this new purchase, MicroStrategy’s total Bitcoin holdings now amount to around 205,000 Bitcoins, worth $6.91 billion.
Additionally, Merrill, a subsidiary of Bank of America Corp, and Wells Fargo & Co’s brokerage business announced that they are now offering Bitcoin ETFs, reflecting mainstream financial institutions’ rising interest in such products.
