8 months ago
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The increased volatility of Bitcoin has not discouraged institutional investors from expressing a strong interest in the cryptocurrency.
Nilam Resources Inc (OTCMKTS: NILA), a precious metal mining company based in South America has announced intentions to acquire $1.7 billion worth of Bitcoin (BTC).
The Nilam Resources $1.7B Bitcoin Bet
Nilam Resources highlighted in a recent update that it recently signed a Letter of Intent (LOI) with Xyberdata Ltd to purchase all of the common shares of a special purpose company called MindWave, which will hold 24,800 Bitcoin it plans to acquire.
While commenting on the acquisition, Nilam Resources’ CEO, Pranjali More stated:
“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).”
In addition to Bitcoin, Nilam Resources said it will also acquire other assets belonging to Mindwave that 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, which coincides 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.
Nilam Resources added that the terms and conditions of the acquisition will be outlined in one or more final agreements. It is projected that the mining giant will acquire a 100% interest in MindWave, converting it into a subsidiary. Accordingly, 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 interest in cryptocurrencies grows in Latin America, Nilam Resources has broken the record by being the first corporate entity to put capital in an investment that uses 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.
Wall Street Firms Tiptoe to Bitcoin Investments
The increased volatility of Bitcoin has not discouraged institutional investors from expressing a strong interest in the cryptocurrency. Specifically, Wall Street corporations are getting more receptive to the trend of corporate investments in Bitcoin as an asset class, which was started in August 2020 by the American software and business intelligence company MicroStrategy Inc (NASDAQ: MSTR).
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 buyup, MicroStrategy’s total Bitcoin holdings now amount to around 205,000 Bitcoins, worth $6.91 billion.
Similarly, 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.
