Despite a surge in its stock price, everything does not seem so good in Nilam Resources’ camp as its CEO resigns.
Gold miner Nilam Resources’ stock surged over 1900% in just a day after the firm announced its intention to invest in Bitcoin (BTC). With ticker NILA, the share closed at $0.017 per share on Monday but has since grown more than 19x to trade $0.33 on Tuesday.
This astronomical bullish uptrend came after Nilam announced its plan to acquire 100% of an entity’s common stock under a new name, Mindwave. The gold miner noted that its new firm would hold 24,800 BTC ($1.7 billion) and other unnamed assets.
To the Moon?
Although Nilam Resources has not acquired the bitcoins, reports of its interest have attracted investors to the gold miner. Investors are particularly enthusiastic about the token, seeing the recent uptrend in stocks with exposure to Bitcoin.
Stocks like Microstrategy’s MSTR have been in good form, soaring over 115% in the past month and 31% in the last five days. Although crypto mining stocks have underperformed despite Bitcoin’s continual surge, they have recently picked up. Marathon Digital Holding’s MARA has moved over 4% in the past five days, while Riot’s stock gained 2.55% in the same timeframe.
Although the surge meant that NILA is on course for its best-performing day since November 27, 2012, the stock is still over 80% down from its all-time high of $113. NILA has a market cap of $274 million.
Nilam CEO Allegedly Resigns
The bullish news from Nilam Resources may not mean all is well with the gold miner, as a report from Protos stated that its CEO, Ron McIntyre, has resigned. He noted that he was removed from the position over a week ago but still appeared in corporate documents as though he were still the executive officer.
McIntyre further stated that he was resigning because Nilam Resources kept him in the dark on the deal to acquire 24,800 Bitcoin. He noted that the gold miner filed the letter of intent without giving him the agreement’s details or letting him review them.
“Just look at the chart—it’s a classic pump-and-dump. There will be a FINRA investigation into Nilam Resources,” McIntyre stated.
Protos cited the financial incapabilities of Nilam Resources and its partner Xyberdata to acquire the $1.7 billion worth of Bitcoin it announced. According to Nilam Resources’ fiscal reports, it has only $2 million in earnings before interest and taxes, while Xyberdata has an unaudited $70 million in shareholder funds and only $1.2 million at hand.
