Gold Mining Firm Nilam Resources Files to Acquire 24,800 BTC

Institutional influx into Bitcoin has continued to heighten; this time, a gold mining firm has pledged allegiance to the “digital gold.”

South American investment holding and gold mining firm Nilam Resources has filed a letter of intent to acquire 100% of the common stock of a special purpose entity, which will acquire 24,800 bitcoin (BTC). 

The miner’s press release on March 25 stated it would partner with Xyberdata to acquire the entity, which will be established under the name MindWave. Nilam Resources noted that MindWave would hold Bitcoin worth over $1.7 billion and other assets.

The South American gold miner would issue a newly authorized Preferred Class of Series C Stock in exchange for the 24,800 bitcoin. Nilam Resources intends to use these bitcoins and other unnamed assets as collateral to raise capital for investment in high-yield generating projects.

Bitcoin Is the Future of Digital Transaction: Nilam

In the press release, Nilam expressed enthusiasm for acquiring Bitcoin, branding the asset the “gold standard” and “the future of digital transactions.”

“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),” Pranjali More, CEO of Nilam Resources, stated.

More further stated that Nilam Resources only invests in projects that have a social and environmental impact, insinuating that Bitcoin has driven change in the digital economy. The acquisition takes Nilam Resource’s asset valuation to over $1 billion.

Institutional Influx Continues

Nilam Resources joins a host of institutions like Microstrategy, BlackRock, and Fidelity to gain exposure to the scarce “digital gold.” More notable in this case is that a gold mining firm has decided to pledge its allegiance to Bitcoin.

Earlier this month, Stanford University’s Byth Funds dedicated 7% of its portfolio to buying Bitcoin. The student-managed funds revealed that they purchased Bitcoin at $45,000.

A continued institutional influx would further heighten the supply shock expected in the Bitcoin market after the halving. US exchange-traded funds (ETF) already take in 11x more than miners produce daily.