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Nilam CEO Resigns, Accuses Own Company of Bitcoin Related Pump and Dump Amid Share Price Skyrocketing 22x
- Investment holding company Nilam Resources announced a deal to acquire a special purpose entity known as MindWave, which holds Bitcoin currently valued at over US$1.7 billion.
- The deal raised some eyebrows among market watchers, with some suggesting it may amount to a pump and dump scheme.
- Share price of NILA has sky-rocketed by 1500% further raising suspicions as the CEO resigns.
A drama unfolded this week as small-cap investment holding company, Nilam Resources, seemingly played the market with its announcement of plans to expand into digital gold, aka. Bitcoin.
Related: Don’t Wait Around: Crypto Banter Says Make These Portfolio Changes Now
In a press release, Nilam said it had entered into a Letter Of Intent (LOI) with Mauritius-based connectivity services firm, Xyberdata Limited, to acquire 100% of a special purpose entity known as MindWave, which holds 24,800 BTC currently valued at approximately US$1.7 billion (AU$2.3 billion).
Eyebrows were raised, as that’s a lot of Bitcoin for a company that had a market cap of under US$1 million (AU$1 million) and is considered a ‘penny stock’. In exchange, MindWave shareholders would receive a Preferred Class of Series C Stock issued by Nilam.
The deal would see Nilam acquire the Bitcoin at a discounted rate relative to current market prices, which according to Nilam would be used as collateral to help it fund investments into what it refers to as “high yield generating projects”.
Share Price Skyrockets Post Press Release, CEO Resigns
Surprise, surprise, barely 24 hours since the company’s statement, and the share price of NILA has sky-rocketed by 1500%.
This sure seems odd and it didn’t take long for another twist. As Protos reports Nilam Resources executive Ron McIntyre has now resigned as CEO claiming he had no involvement in the whole matter. He said he was only informed of a “forthcoming transaction” but wasn’t told any details.
He told Protos reporters:
Just look at the chart — it’s a classic pump and dump. There will be a FINRA investigation into Nilam Resources.
Ron McIntyre
Question Marks Raised Over Deal
Even before the former CEO’s comments, such a huge acquisition by such a tiny company had, unsurprisingly, left market watchers asking a few questions about what exactly was going on.
Matthew Siegel, Head of Digital Asset Research at Van Eck posted on X quoting from Nilam’s press release and pondering what kind of scam it is: “Issue LOI to buy #bitcoin, stock pumps, issue equity, profit?”.
Related: Ripple CEO Discloses SEC’s Intent to Request $2 Billion Fine from Judge
Another user who claims to be the CEO and President of Thax Capital also chimed, questioning where all these BTC are coming from:
Who hold the BTC now? Will they be purchased in the market or are they already on Xyoerdata [sic] balance sheet? Confusing PR and feels like a pump n dump scheme.
Thax Capital on X 
Author
Jody McDonald
Jody is a Brisbane-based freelance writer who specialises in writing about business, technology, and the future of work.
