South American gold mining giant buys Bitcoin

Author: Qin Jin, Carbon Chain Value

Bitcoin is attracting the attention of listed companies in various industries around the world.

Following the public acquisition of Bitcoin by MicroStrategy, an enterprise-level software company listed on the U.S. stock market, Nilam, another traditional gold mining giant listed in South America, announced its acquisition of Bitcoin. Compared with Weizelu’s purchase of Bitcoin through debt issuance and use of the company’s net profits, Nilam purchases Bitcoin through the acquisition of special purpose entities.

On March 25, Nilam, a listed gold mining company in South Africa, announced that the company had signed a letter of intent with Xyberdata Ltd., a special purpose entity in Mauritius, to acquire 100% of the special purpose entity to be established in the name of Mindwave. Equity, the entity currently holds 24,800 Bitcoins. Nilam will issue newly authorized Class C preferred shares in exchange for 24,800 Bitcoins at a discount to the current market price. At current Bitcoin prices, this transaction would bring Nilam more than $1.7 billion in Bitcoin value.

According to the announcement, it is expected that after the acquisition between the two parties is completed, Nilam will acquire 100% of MindWave's equity, thus making it a subsidiary of Nilam. MindWave shareholders will exchange their equity interests in Mindwave for a new class of preferred shares (Class C) authorized and issued by NILA.

Pranjali More, Chief Operating Officer of Nilam Resources, said that this acquisition and the resulting strategic partnership coincide with NILA’s vision, mission and core values ​​- the future of finance will be inclusive and sustainability, creating transparent and impactful solutions while driving positive change in the digital economy.

In July 2020, MicroStrategy began to explore alternative assets to hedge inflation and cash substitutes, such as Bitcoin. As of March 11, 2024, the company already holds more than 200,000 Bitcoins. Valued at over $14 billion. MicroStrategy has spent more than $1 billion on Bitcoin in the first three months of 2024, accounting for more than half of last year’s total purchases. Bitcoin has gained about 675% since Saylor began buying.

In 2023, the price of Bitcoin skyrocketed, benefiting from the close relationship between company stocks and the company's reserves of Bitcoin. The company's stock MSTR soared 337%. It became one of the biggest gains among U.S. companies valued at $5 billion or more, outpacing Nvidia's 234% gain and Meta's 194% surge at the time.

Looking back at Nilam, it is also a listed company. If we extend the time by three years and look back at Nilam, will it have the same scale of returns as the micro strategy? We will wait and see the answer. But at least one fact that cannot be ignored is that with the recovery and start of the Bitcoin bull market, in the future, more and more global listed companies across the industry will begin to pay attention to and even invest in Bitcoin.