South American gold mining company Nilam Resources has revealed plans to acquire 24,800 BTC, worth more than $1.7 billion at the current cryptocurrency market exchange rate.
The company has signed a preliminary agreement with Xyberdata LTD. Under it, Nilam Resources will issue Series C preferred shares in exchange for 24,800 BTC at a price below the current market price.
In addition, the company will acquire Mindwave, a company responsible for storing digital currencies. The announcement states that the company will operate as a subsidiary of Nilam Resources and will focus on protecting various #digital assets along with bitcoin.
According to the official statement, the first digital currency fundraising will be used to provide funding for "profitable ventures".
Pranjali Mo, CEO of Nilam Resources, said:
"Our company and team have worked hard over the past few months to finalize all agreements and necessary assessments to move to a legally binding preliminary agreement."
The crypto sector community had mixed reactions to the company's announcement. Observers noted that Nilam Resources has a market capitalization of only $4 million. The possibility of such a company acquiring bitcoin worth 1.7 billion USD is questionable.
In addition, the community noted inconsistencies between the preliminary agreement and the actual purchase of digital assets. According to some users, there has been speculation that this widely circulated news is part of an alleged #pump-and-dump strategy to artificially inflate the company's share price.
