Crypto agency Unicoin has agreed to purchase a 51% stake in Diamond Lake Minerals, a agency specializing in digital belongings, setting the stage for a strategic rebrand and a shift into altcoin treasury.
The deal, which was introduced on Monday, will see Diamond Lake Minerals renamed to DiamondLake and refocussed on constructing a cryptocurrency treasury enterprise. That effort is impressed by Technique’s bitcoin
-heavy company treasury technique however swaps BTC for rising altcoins.
Shares of Diamond Lake Minerals’ had been final buying and selling at $3.96, suggesting the deal may very well be value above $70 million. The acquisition is anticipated to shut inside 20 days, pending commonplace circumstances.
Unicoin CEO Alex Konanykhin framed the transfer as a wager on the way forward for cryptocurrencies. He cited legislative shifts just like the current passage of the Guiding and Establishing Nationwide Innovation for U.S. Stablecoins (GENIUS) Act by the nation’s Senate as catalysts that would unlock altcoin potential.
“We consider the identical outcomes achieved with Bitcoin might be replicated at a fraction of the price within the alt-coin section,” Konanykhin mentioned.
DiamondLake’s CEO Brian J. Esposito known as the deal “historic,” emphasizing the corporate’s long-standing ambition to convey tokenization into the core of public market funding methods.
The brand new firm will give attention to tokenizing real-world belongings and making them accessible to on a regular basis buyers.
The acquisition comes roughly a month after the U.S. Securities and Change Fee (SEC) sued Unicorn and three of its executives, together with Konanykhin, for allegedly elevating over $100 million in a “large securities fraud.”
The company claims Unicoin misled buyers by inflating actual property valuations and selling outsized, unrealistic returns, corresponding to a 9 million p.c acquire, by aggressive advertising and marketing campaigns. The SEC is searching for disgorgement and civil penalties.
Konanykhin has dismissed the costs as “blatantly false,” and prompt the SEC continues to be going after crypto corporations, even after the regulator dropped instances in opposition to corporations together with Coinbase, Kraken, and Uniswap.
He rejected a proposed settlement assembly in April, calling the SEC’s phrases “unacceptable.” In a letter to shareholders, he argued that Unicoin had complied with U.S. laws and accused the regulator of inflicting “multi-billion-dollar damages” by its probe.
