South America’s investment holding company Nilam Resources has announced it is making a crucial pivot into the Bitcoin (BTC) ecosystem. According to its recent update, it plans to inject as much as $1.7 billion which will ultimately be used to buy up to 24,800 Bitcoin units.

Important Pivot Into Bitcoin (BTC)

As a business with different investment interests, Nilam Resources filed a Letter of Intent (LOI) with Xyberdata Ltd to purchase 100% of the common stock of a special purpose firm. This Special Purpose firm will be established under the MindWave name and will hold the 24,800 Bitcoin it intends to acquire.

Slated to be located in Mauritius, Nilam Resources said it will take up a 100% stake in MindWave. The Bitcoin asset is not the only digital currency the firm hopes to invest in as it noted categorically that it will hold “other assets” as well. These digital currencies as noted are not designated for HODLing, rather, they will serve primarily as collateral to raise funds for investments in projects with high-yielding.

With the Latin American Bitcoin scene now waking up to digital currencies, Nilam Resources has now broken the record as the first corporate firm to invest its capital into an investment with Bitcoin as the underlying asset. The firm noted that this investment approach aligns with its strategies to inject cash into high-value innovations that cut in between the digital economy and the tech world.

The big plans Nilam Resources has for its new Bitcoin-backed MindWave entity might also involve public listing in the long run. 

The Bitcoin Revolution is Picking Up

For a corporate investment in Bitcoin as an asset class, Wall Street firms are beginning to warm up to the trend that was pioneered by American business intelligence and software firm MicroStrategy Inc. in August 2020.

Since it adopted Bitcoin as its Treasury Reserve Asset (TRA), MicroStrategy has consistently accumulated BTC, sending its total holdings to 214,246 BTC as of March 23. BlackRock, the dominant spot Bitcoin ETF issuer ranks as the top BTC holder with a total of 243,125 units of BTC.

In pushing the bullish narratives around Bitcoin, Michael Saylor, the architect of MicroStrategy’s accumulation strategy believes BTC can help cushion the stagnancy of Gold and the slump in fiat currencies. Nilam Resources seems to have been paying attention to this update.

This accumulation news might have contributed to stirring a recovery in the price of Bitcoin which is up 7.2% in the past 24 hours at the time of writing to $70,145.

The post Breaking: South American Nilam Resources To Buy 24800 Bitcoin (BTC) appeared first on CoinGape.

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Filed under: News - @ January 1, 1970 12:00 am