Nilam Resources: Share price plunges after Bitcoin deal

Nilam Resources wanted to buy nearly $2 billion worth of Bitcoin. The stock soared - and has now completely collapsed.

It was only at the beginning of the week that Nilam Resources, a gold company with an impressive 24,800 BTC wanted to acquire for the equivalent of nearly $2 billion as part of a new Bitcoin strategy.

After the announcement the share price exploded sometimes by more than a thousand percent.

The alleged Bitcoin acquisition was initially announced during the announcement of a strategic partnership with Xyberdata Ltd. However, this company has no cash at all to realize the plans. This company however, also has nowhere near enough financial resources for the purchase.

There was also apparently great confusion within the company: according to protos.com, CEO Ron McIntyre resigned after the announcement, although the press release was apparently published without his knowledge.

The former CEO called the share price rise a "pump and dump," and yesterday's development proves him right. After exploding upward, Nilam Resources' share price plummeted just as quickly.

At times, Nilam Resources stock was trading at a price of more than $0.3. At the close of trading, the stock was trading at only $0.0131.