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Obscure Stock Pumps $1,000% After Firm Touts $1.7 Billion Bitcoin Buy—Is It Legit?
A little-known investment holding company has announced its intent to take billions of dollars in Bitcoin (BTC) off the market—but crypto fanatics think the news is too bullish to be true.
Nilam Resources (NILA)—a self-described investment holding company focused on “frontier technologies”—said it signed a letter of intent to acquire 24,800 BTC on Monday. The bold plan follows its acquisition of MindWave, a special-purpose entity, from the Mauritas-based connectivity firm Xyberdata.
That’s a Bitcoin buy worth $1.72 billion at today’s prices, carrying a potentially powerful demand shock. But it also raised questions about how the company can afford that sort of purchase, given that the self-reported market cap of Nilam Resources is less than $25 million, per the company’s website.
The company’s press release says it plans to issue a “newly authorized Preferred Class of Series C Stock” to acquire the coins at a “discounted rate” relative to Bitcoin’s current price, up 57% since the start of the year.
“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)," said Pranjali More, CEO of Nilam Resources.
