The investment holding Nilam Resources intends to purchase 24,800 BTC ($1.75 billion). The partner in the implementation of the initiative will be telecommunications service provider Xyberdata Ltd from Mauritius.
According to its website, the company aims to generate investment returns by acquiring, holding and actively managing a portfolio of firms in various verticals, including fintech, medtech, climatetech and others.
The press release states that Xyberdata (formerly 101 Systems Ltd) has built a network of 80,000 km of optical fiber and 1,800 MPLS endpoints since 2011 across Africa, Asia, Europe, North America, Oceania and South America.
To purchase digital gold, Nilam Resources signed a letter of intent to acquire 100% of the shares of special purpose firm MindWave, which will hold the coins on its balance sheet. These assets will serve as collateral for raising capital for investment in highly profitable projects.
Nilam Resources will pay by issuing an undisclosed number of discounted Class C preferred shares.
The securities will provide holders with the right to conversion "upon listing on the NASDAQ or other national exchange or upon other specified liquidity events."
Only qualified investors can become owners of preferred shares.
The terms of the transaction will be detailed in one or more definitive agreements.
The community was skeptical about the news
Adamant Capital founder Thor Demeester described it as “a gimmick with dying junk stocks.”
I removed my tweet about that gold explorer buying 24k BTC, after a commenter pointed out that it's indeed a stunt from a dying penny stock (market cap of $5M). Perhaps it's a harbinger of what will come, but this, indeed, is _not_ huge news.
(press release:… pic.twitter.com/Vd4p4Dpm6d
An attempt to arrange Pump & Dump saw the initiative as advisor to the President of El Salvador, Max Kaiser.
Looks like a pump ‘n dump, but maybe memers jack market cap up to billions and they pull it off. https://t.co/5ZMxTYLZ2C
— Max Keiser (@maxkeiser) March 25, 2024Such comments are not unfounded. According to Finance.Yahoo, Nilam Resources' capitalization is $925,000. The company's website lists the figure as $23.3 million. Both the first and second are orders of magnitude lower than the market value of 24,800 BTC ($1.75 billion).
It is not possible to assess the financial capabilities of Xyberdata Ltd, taking into account its non-public status.
According to BitcoinTreasuries, in total public companies purchased 307,411 BTC, private companies - 516,571 BTC. They account for 1.46% and 2.46% of the total supply of coins, respectively.
Data: BitcoinTreasuries.Recall that in March, El Salvadoran President Nayib Bukele published the address where 5689.69 BTC (~$406.6 million) are stored.