Bitcoin

WhereAt Social

Nilam Resources, a micro-cap company that touted plans this week to acquire $1.7 billion worth of Bitcoin (<a href="https://cointelegraph.com/bitcoin-price">BTC</a>), has been flagged as a “public interest concern” amid a meteoric 1,500% share price surge on Tuesday, March 26.
OTC Markets Group, the firm that runs OTC Pink, a platform for over-the-counter stock trading, currently labels Nilam Resources (NILA) as “Caveat Emptor” — a <a href="https://www.otcmarkets.com/glossary#caveat-emptor" target="_blank" rel="noopener nofollow">designation</a> it hands down&nbsp;to companies it deems worthy of “buyer beware.”
In a glossary page explaining the labels, OTC Markets explained that this “public interest concern” may stem from a spam campaign, questionable stock promotion, any known investigation of the company, regulatory suspensions, or any other disruptive corporate actions. 
The OTC listing for NILA also shows it has been deemed a “Shell Risk” — a label given to companies it thinks is likely a shell company based on its annual financial data and other income-related metrics.
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 Listing for Nila Resources showing the various warning labels Source: OTC Markets
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On March 25, Nilam Resources, an investment holding company, announced it had entered into a Letter of Intent to acquire a company that plans to hold 24,800 Bitcoin.
Nilam Resources claimed the deal had been months in the making. It plans to issue a newly authorized “preferred stock” in exchange for the Bitcoin, which will be at a “discounted rate relative to current market prices.”
A day later, its share prices soared, reaching a new all-time high of 33 cents, up 1,700% from 1.8 cents last week. The company’s current market cap currently stands at $280 million, <a href="https://www.otcmarkets.com/stock/NILA/security" target="_blank" rel="noopener nofollow">according</a> to OTCMarkets. 
However, many crypto-natives aren’t convinced the firm will be able to follow through with its ambitious plan, with some suggesting the announcement is some kind of “marketing stunt.” 
<h2 id="stunt-of-a-dying-penny-stock">“Stunt of a dying penny stock”</h2>
Bitcoin analyst and Adamant Research&nbsp;editor Tuur Demeester said he <a href="https://twitter.com/TuurDemeester/status/1772363440729800984" target="_blank" rel="noopener nofollow">removed</a> his initial tweet sharing Nilam’s announcement on X after “a commenter pointed out that it’s indeed a stunt from a dying penny stock.”
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 Source: <a href="https://twitter.com/TuurDemeester/status/1772363440729800984" target="_blank" rel="noopener nofollow">Tuur Demeester</a>
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Quinten Francois, a crypto YouTuber and co-founder of Web3 company WhereAt Social also accused the filing of being a “marketing stunt” — common among failing small-cap stocks.&nbsp;
Dylan LeClair, director of market intelligence at digital asset fund UTXO Management also shared doubts, noting the plan would only work if there were legitimate demand for the equity sale. 
<blockquote>
 “A letter of intent is one thing, actually executing is another.”
</blockquote>
“Likely flops and is for PR purposes,” he added. 
If Nilam is successful, the company will hold more Bitcoin than any other publicly listed company in the United States, <a href="https://cointelegraph.com/news/microstrategy-sells-604m-notes-buy-btc">except for</a> MicroStrategy. 
Related: <a href="https://cointelegraph.com/news/microstrategy-sells-604m-notes-buy-btc">MicroStrategy sells another $604M of notes to buy 9K Bitcoin</a>
That would include beating Elon Musk’s Tesla and major Bitcoin miners such as Riot Blockchain, Hut 8 Corp, and Marathon Digital Holdings, <a href="https://bitcointreasuries.com/riot/" target="_blank" rel="noopener nofollow">according</a> to data from BitcoinTreasuries. 
<h2 id="former-ceo-calls-it-a-pump-and-dump">Former CEO calls it a “pump and dump”</h2>
Former Nilam Resources CEO Ron McIntyre has also reportedly cried foul over the announcement, <a href="https://protos.com/scoop-nilam-resources-ceo-resigns-day-after-24800-bitcoin-announcement/" target="_blank" rel="noopener nofollow">telling</a> Protos that the press release was issued without his review and that he didn’t have detailed knowledge of the deal. 
Asked why he resigned from his position, McIntyre reportedly replied: 
<blockquote>
 “Just look at the chart — it’s a classic pump and dump.” 
</blockquote>
“There will be a FINRA investigation into Nilam Resources,” he added.
Nila Resources describes itself as an investment holding company. In November last year, it <a href="https://x.com/Nilaholdings/status/1729500642346197230?s=20" target="_blank" rel="noopener nofollow">announced</a> it would be pivoting from health and wellness investments to “frontier tech” including medtech, fintech, and climate tech.
It followed up just a day later with an announcement it had acquired TechyTrade, a fintech technology provider. 
Nilam Resources did not immediately respond to a request for comment.
Magazine: <a href="https://cointelegraph.com/magazine/3ac-kyle-davies-brit-launders-6b-btc-fast-food-worker-asia-express/">Asia Express ‘Am I sorry? No’ — 3AC founder. $6B BTC laundered for fast food worker: Asia Express</a>

Nilam Resources flagged ‘buyer beware’ as shares pump over Bitcoin plans

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