Nilam Resources, a micro-cap company that touted plans this week to acquire $1.7 billion worth of Bitcoin (BTC), has been flagged as a “public interest concern” amid a meteoric 1,500% share price surge on Tuesday, March 26.
OTC Markets Group, the firm that runs OTC Pink, a platform for over-the-counter stock trading, currently labels Nilam Resources (NILA) as “Caveat Emptor” — a designation it hands down to companies it deems worthy of “buyer beware.”
In a glossary page explaining the labels, OTC Markets explained that this “public interest concern” may stem from a spam campaign, questionable stock promotion, any known investigation of the company, regulatory suspensions, or any other disruptive corporate actions.
The OTC listing for NILA also shows it has been deemed a “Shell Risk” — a label given to companies it thinks is likely a shell company based on its annual financial data and other income-related metrics.
Listing for Nila Resources showing the various warning labels Source: OTC Markets
On March 25, Nilam Resources, an investment holding company, announced it had entered into a Letter of Intent to acquire a company that plans to hold 24,800 Bitcoin.
Nilam Resources claimed the deal had been months in the making. It plans to issue a newly authorized “preferred stock” in exchange for the Bitcoin, which will be at a “discounted rate relative to current market prices.”
A day later, its share prices soared, reaching a new all-time high of 33 cents, up 1,700% from 1.8 cents last week. The company’s current market cap currently stands at $280 million, according to OTCMarkets.
However, many crypto-natives aren’t convinced the firm will be able to follow through with its ambitious plan, with some suggesting the announcement is some kind of “marketing stunt.”
“Stunt of a dying penny stock”
Bitcoin analyst and Adamant Research editor Tuur Demeester said he removed his initial tweet sharing Nilam’s announcement on X after “a commenter pointed out that it’s indeed a stunt from a dying penny stock.”
Source: Tuur Demeester
Quinten Francois, a crypto YouTuber and…
..
