Nilam Resources, a micro-cap company, has attracted attention after announcing plans to acquire $1.7 billion worth of Bitcoin. However, the company has been flagged as a “public interest concern” by OTC Markets Group, the firm that operates OTC Pink. This designation is given to companies that are deemed risky for investors. OTC Markets explained that this concern may arise from factors such as spam campaigns, questionable stock promotion, investigations, regulatory suspensions, or disruptive corporate actions. Additionally, Nilam Resources has been labeled as a “Shell Risk,” indicating that it may be a shell company based on its financial data and income-related metrics.
On March 25, Nilam Resources revealed that it had entered into a Letter of Intent to acquire a company that intends to hold 24,800 Bitcoin. The company claims that this deal has been in the works for months and plans to issue preferred stock in exchange for the Bitcoin at a discounted rate. Following this announcement, the company’s share prices skyrocketed, reaching an all-time high of 33 cents, up 1,700% from 1.8 cents the previous week. Its current market capitalization stands at $280 million.
However, some experts in the crypto industry are skeptical about whether Nilam Resources will be able to fulfill its ambitious plan. They suspect that the announcement may be a marketing stunt from a failing penny stock. Bitcoin analyst Tuur Demeester removed his initial tweet about Nilam’s announcement after realizing the nature of the company. Quinten Francois, a crypto YouTuber, and Dylan LeClair, the director of market intelligence at UTXO Management, also expressed doubts about the company’s plan.
If Nilam Resources succeeds, it will hold more Bitcoin than any other publicly listed company in the United States, with the exception of MicroStrategy. This would surpass Tesla, as well as major Bitcoin miners like Riot Blockchain, Hut 8 Corp, and Marathon Digital Holdings.
Former Nilam Resources CEO Ron McIntyre has criticized the announcement, claiming that it was issued without his review and that he was not fully aware of the details of the deal. McIntyre has also suggested that there will be a FINRA investigation into Nilam Resources.
Nilam Resources describes itself as an investment holding company that recently shifted its focus to “frontier tech,” including medtech, fintech, and climate tech. The company previously announced the acquisition of TechyTrade, a fintech technology provider.
Nilam Resources has not yet responded to requests for comment.