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Bitcoin is attracting the attention of publicly listed companies from various industries worldwide. Following the public acquisition of Bitcoin by MicroStrategy, a publicly traded enterprise software company, another traditional gold mining giant located in South America, Nilam, has announced its acquisition of Bitcoin. In contrast to MicroStrategy's method of purchasing Bitcoin through issuing debt and utilizing corporate profits, Nilam is acquiring Bitcoin through the acquisition of a special purpose entity.
On March 25th, Nilam, a gold mining company based in South Africa, announced that it had signed a letter of intent with Xyberdata Ltd., a special purpose entity based in Mauritius, to acquire 100% equity of a special purpose entity established under the name Mindwave, which currently holds 24,800 bitcoins. Nilam will exchange newly authorized Class C preferred shares at a discounted price relative to the current market price for the 24,800 bitcoins. Based on the current price of Bitcoin, this transaction is expected to bring Nilam Bitcoin assets worth over $1.7 billion.
According to the announcement, upon completion of the acquisition, Nilam will gain 100% ownership of MindWave, making it a subsidiary of Nilam. MindWave shareholders will exchange their ownership in Mindwave for a new class of preferred shares (Class C) authorized and issued by NILA.
Pranjali More, Chief Operating Officer of Nilam Resources, stated that this acquisition and the resulting strategic partnership align perfectly with NILA's vision, mission, and core values — the future of finance will be inclusive and sustainable, pioneering transparent and impactful solutions while driving positive change in the digital economy.
In July 2020, MicroStrategy began exploring alternative assets such as Bitcoin to hedge against inflation and serve as a cash substitute. As of March 11, 2024, the company held over 200,000 bitcoins worth over $14 billion. In the first three months of 2024 alone, MicroStrategy spent over $1 billion on Bitcoin, accounting for more than half of its total purchases last year. Since Saylor began purchasing, Bitcoin has risen by approximately 675%.
In 2023, Bitcoin experienced a surge in price, benefiting from the close relationship between the company's stock and its reserve of Bitcoin. The company's stock, MSTR, surged by 337%, becoming one of the highest-gaining companies among those valued at $5 billion or more in the United States, surpassing Nvidia's 234% surge and Meta's 194% surge at the time.
Looking at Nilam, also a publicly listed company, if we extend the timeline by three years, will it experience similar gains to MicroStrategy? The answer remains to be seen. However, one undeniable fact is that with the resurgence and opening of the Bitcoin bull market, there will be an increasing number of globally listed companies from various industries paying attention to and even investing in Bitcoin. |
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Post time 7-4-2024 21:29:06