Shares of controversial company surge 1,500% after announcing investment in Bitcoin

Sapphire Resources (NILA), a Canadian gold mining company operating in Peru, saw shares surge 1,500% in just one day.

As the following chart shows, NILA share prices rose from $0.016 to $0.37 yesterday, March 26. trading view,

This amazing growth came soon after the company will announce He will receive 24,800 Bitcoin (BTC) by signing a letter of intent With Xyberdata Ltd to acquire 100% of the common shares of a special purpose entity, to be called Mindwave.

Furthermore, it was mentioned NILA to issue Series C shares in exchange for BTCAt a discount rate in relation to market prices.

According to the official statement, these assets will serve as collateral to obtain capital for high-yield projects.

What is shocking about this situation is that, according to NILA’s financial projections, The company expects to make a profit of only $2 million. This is EBITDA before interest, taxes, depreciation and amortization (EBITDA) for 2024, according to a report,

This gap between the company’s financial position and the investment represented by acquiring 24,800 BTC worth more than $1.7 billion, Bitcoiner did not escape the attention of the community,

Ture Demeester, economist, investor and CEO of Adamant Research, Said who initially shared the news, but then removed it when a commenter pointed out that the company’s stock was worth only a penny, with a market capitalization of only $5 million. This fact raised doubts on the authenticity of the news.

For his part, there is also Max Keizer, a well-known American Bitcoiner and journalist. express your doubt When the NILA situation is compared to a possible plan called «pump and dump, (pumping and unloading).

It is a method that involves artificially inflating the price of a cryptocurrency or stock through mass purchasing or misleading promotion, followed by a quick sale to realize a profit, according to Cryptopedia (cryptonautical educational section). Is explained by.

After this the company refused to invest in Bitcoin and its CEO Ron McIntyre resigned from his post. According to reports His name was removed from all corporate documents in the press release.

McIntyre justified himself and said that, although he was informed about the investment plans, he did not have access to the details of the agreement and The press release was issued without your review or prior knowledgeTherefore he is considering taking legal action due to this incident.

The question in this scenario is whether NILA’s strategy was a deliberate marketing strategy or a communication error. It is likely that the company has tried to take advantage of Bitcoin to increase its visibility and share price.

While it’s true that shares rose significantly, they fell sharply to $0.015 in the current session, almost the same as their price before the announcement.