Gold Miner Nilam Resources Shares Surge 22x Amidst Bitcoin Buying Announcement

Gold miner Nilan Resources announced it was buying Bitcoin and other cryptocurrencies in a recent announcement.

The miner proposed to purchase 24,800 BTC worth ~$1,7 billion, a statement that overturned the tables positively for the company. Following the announcement, Nilam Resources' stock saw a 22x increase in a single day.

Gold Miner Plans To Acquire 24,800 BTC Pushes Stock To 22x Increase

In a recent announcement, South American gold miner Nilam Resources disclosed plans to buy several digital assets, including 24,800 BTC tokens.

According to the firm, the acquisition is through a Letter of Intent (LOI) with Xyberdata Ltd. It involves Nilam taking over 100% of the common stock of MindWave, a Mauritius-based special-purpose entity that supposedly holds 24,800 Bitcoin and other virtual assets.

Further, according to the announcement, the purchased 24,800 BTC tokens will serve Nilam in different dimensions. The miner could generate capital for some high-yield projects using assets as collateral.

Also, the acquisition move would support and position its total assets with a valuation of over $1 billion. Moreover, Nilam, as a mining firm, intends to concentrate on an inclusive, transparent, and sustainable economy.

The company highlighted:

Transparency, innovation, and sustainability define us. We prioritize clear communication, embrace cutting-edge ideas, and invest in projects with enduring social and environmental impact."

Following the BTC acquisition announcement, Nilam Research's stock reacted positively. According to a March 26 tweet by an X user, Luke Mikic, Nilam's shares recorded a remarkable 22x surge to $0.0225 per unit.

This surge represents a whopping 1,700% price increase for the stock, the highest level since the firm's 11 years of existence. Also, the RSI reflected an oversold threshold for NILA as it stretched almost to 90.

Nilam CEO Exits, Alleging A Pump And Dump Scheme With BTC Acquisition

While Nilan celebrated the remarkable stock performance, a lot of people speculated the proposed Bitcoin plan could be a stunt to resurrect a dying penny stock. Notably, Nilam Resources has been in existence since 2005, and its stock prices have not once reached $1. Also, the firm's market cap is only a meager $5 million.

Such a move to purchase $1.7 billion worth of Bitcoin by a micro-cap company has raised concerns of a pump-and-dump scheme. Amid the meteoric stock price rally, OTC Markets Group, a notable over-the-counter stock trading platform, flagged Nilam Resources stock, NILA, as Caveat Emptor, meaning buyers beware."

Also, two days after Nilam announced the proposed BTC acquisition, its CEO, Ron Mclntyre, exited the company. According to a related post on X, the CEO reportedly revealed the scam behind the Bitcoin acquisition plan.

Mclntyre called the plan a classic pump and dump scheme from the gold mining firm. While criticizing the company, Mclntyre denied knowledge of the deal indicated in the Letter of Intent.

Notably, McIntyre's statement suggests a case of secrecy and potential market manipulation by Nilam Resources.

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