Nilam Resources (OTC: NILA) stock price went bonkers this week, becoming the best-performing companies in Wall Street. The penny stock surged by more than 1,600% on Tuesday, reaching a high of $0.3750. At its highest level, Nila was up by over 6,375% from its lowest point this year.
NILA stock chart
Nila Resources is a company in the gold mining industry. Its stock has been in a slow upward trend in the past few days, helped by the strong performance of gold, which has jumped to its highest level on record.
The stock went parabolic on Tuesday as investors cheered its entry into the Bitcoin industry. In a statement, the firm said that it had entered letters of intent to acquire 24,800 Bitcoins. It is following in the footsteps of MicroStrategy, which has become a $30 billion behemoth by adding thousands of coins in its portfolio.
The challenge for Nilam Resources is whether it can afford these coins. At the current price of $70,500, the company would need over $1.74 billion to buy these coins. Nilam does not have this kind of money. It is unclear how much money it has in its balance sheet. The sharp increase of its stock has pushed its market cap to $72 million.
The company’s announcement mirrors that of Bit Brother (BETS), which was previously known as Urban Tea. At the height of the crypto bull run in 2021, the company changed its name and moved to the Bitcoin mining industry. Today, Bit Brother is a penny stock with a market cap of just $585k.
Therefore, Nilam Resources’ announcement is likely intended to pump the stock since it does not have a supportive balance sheet. Unlike MicroStrategy, it will be difficult for the company to borrow money to accumulate these coins.
Nilam is aiming to take advantage of the ongoing Bitcoin bull run. The coin has jumped from $15,000 in 2022 to over $70,000 and analysts expect it to continue soaring.
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