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Bitcoin Acquisition: Nilam Resources CEO Quits After Pump and Dump Allegations

Last Updated March 27, 2024 3:34 PM
Shraddha Sharma
Last Updated March 27, 2024 3:34 PM
By Shraddha Sharma
Verified by Peter Henn

Key Takeaways

  • Nilam Resources CEO reportedly resigns, claiming his company wanted to “pump and dump” Bitcoin.
  • The crypto community questioned the financial feasibility of acquiring 24,800 BTC.
  • NILA stock surged nearly 1,900%, leading to claims of market manipulation.

Nilam Resources CEO has reportedly resigned after an alleged “pump and dump” following a major Bitcoin acquisition announcement. The company said it planned to get hold of 24,800 BTC, despite not having a clear financial strategy. Meanwhile, NILA stock skyrocketed after the announcement, with some members of the financial community calling it a penny stock scam.

Former CEO Flags ‘Pump & Dump’

CEO Ron McIntyre of Nilam Resources, a company known for its ventures in metal mining and investment holdings, has stepped down after alleging the company’s plan was a “pump and dump” scheme. The controversy surrounds the company’s recent announcement to acquire 24,800 Bitcoin through a partnership with Xyberdata Ltd in a bid to increase its digital assets portfolio.

The press release  mentioned the creation of a special purpose entity, MindWave, to hold these digital assets. The ambition behind this acquisition was to diversify the company’s assets and tap into the Bitcoin market.

Financial Feasibility and Skepticism

Skepticism grew as details emerged about the financial viability of such a massive purchase. Analysts were puzzled about how Nilam Resources and Xyberdata, with their reported financial standings, would be able to secure the funds necessary for purchasing Bitcoin worth over a billion dollars. Protos  noted that the companies’ financial disclosures revealed Nilam Resource’s projection of $2m in EBITDA with Xyberdata’s unaudited financials, showing only $1.5 million in cash and $70 million in shareholder funds. The press release did, however, mention that Nilam would issue new Class C stock with Mindwave.

McIntyre openly criticized the company for the Bitcoin acquisition announcement, suggesting he was kept in the dark about the details of the deal. His statements hint at a lack of transparency and possible manipulation within the company, especially when the announcement led to a dramatic increase in the company’s stock price.

The announcement triggered a stock price surge of around 1,900%, with the RSI indicating an oversold category, nearly reaching 90.

NILA Stock Performance | Source: TradingView
NILA Stock Performance | Source: TradingView

In a 2023 press release, the company announced that Pranjali More would serve as the Chief Operating Officer (COO) and Ronald S. McIntyre will continue to be the President and Director of Nilam Resources.

McIntyre said: “There will be a FINRA investigation into Nilam Resources.”

Nilam Resources did not immediately respond to a request for comment.

The Nilam Saga

Nilam Resources either made an ambitious plan to foray into Bitcoin or tried to trick the market. Further investigation would be needed to reveal what was behind McIntyre’s resignation and the claims of market manipulation.

With the market watching closely, however, Nilam Resources’s Bitcoin venture failed to take off.  

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