On Monday, Peruvian gold miner Nilam Resources, Inc. (OTC PINK: NILA) has announced its intention to acquire a staggering 24,800 Bitcoin (BTC). The strategic initiative comes via a Letter of Intent (LOI) with Xyberdata Ltd, setting the stage for the acquisition of 100% of the common stock of MindWave, a special purpose entity to be established in Mauritius for holding the digital assets.

Following The Saylor Playbook

This significant shift towards digital asset investment by Nilam Resources involves the issuance of a newly authorized Preferred Class of Series C Stock, offered in exchange for the Bitcoin at a discount relative to current market prices. With the transaction, Nilam aims to secure digital assets exceeding one billion dollars in value, underpinning a broad strategic milestone for the company in its pursuit of diversification and innovation.

Pranjali More, CEO of Nilam Resources, Inc., underscored the strategic importance of the transaction, stating, “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).”

The collaboration with Xyberdata and the establishment of MindWave in Mauritius is part of Nilam’s strategic vision to harness the potential of Bitcoin. These assets will serve not only as a significant addition to the company’s portfolio but also as collateral to raise capital for investment in high-yield generating projects.

This move aligns with NILA’s broader objectives of fostering a finance ecosystem that is inclusive, sustainable, and defined by transparency, innovation, and sustainability. “We prioritize clear communication, embrace cutting-edge ideas, and invest in projects with enduring social and environmental impact,” added Pranjali More.

The acquisition terms and further strategic details are anticipated to be laid out in subsequent definitive agreements. The completion of this acquisition will see MindWave becoming a fully owned subsidiary of Nilam Resources, with MindWave shareholders exchanging their equity interest for the newly issued Preferred Stock (Class C).

This class of stock will entail conversion rights upon a listing on NASDAQ or another national exchange, among other liquidity events, signaling a significant future milestone for Nilam Resources in the public financial markets.

Bitcoin Community Reacts With Doubts

However, the announcement has been met with skepticism and caution by several notable figures within the Bitcoin community. Matthew Sigel, Head of digital assets research at VanEck, hinted at Nilam’s strategic inspiration, stating, “IN SAYLOR HE TRUSTS –>MOGO, $50M market cap payments company, which owns 13% stake in crypto exchange WonderFi (WNDR CN, mkt cap $180M) announces plans to add Bitcoin to company treasury.”

Tuur Demeester, a respected Bitcoin OG and analyst for Adamant Research, expressed his reservations more bluntly: “I removed my tweet about that gold explorer buying 24k BTC, after a commenter pointed out that it’s indeed a stunt from a dying penny stock (market cap of $5M). Perhaps it’s a harbinger of what will come, but this, indeed, is _not_ huge news.”

This sentiment reflects a broader skepticism about the motivations behind Nilam’s pivot to Bitcoin, questioning the solidity of the company’s financial strategy.

Criticism also came from @hodlonaut, who voiced concerns about the nature of the transaction and the methods Nilam might employ to secure the funds for such a significant purchase, stating, “Not sure what type of fiat abomination NILAM is, or what type of accounting voodoo they intend to deploy to raise the funds, but I do know they want 24,800 btc and that there will never be more than 21M. A storm is brewing.”

Bitcoin analyst Dyan LeClair added that MOGO is a microcap OTC stock, “so this can only work if there is demand for the equity sale. A letter of intent is one thing, actually executing is another. Likely flops, and is for PR purposes. On the contrary, we live in meme world, who knows what happens.”

At press time, BTC traded at $70,316.