On June 23, a cryptocurrency company Unicoin announced that it has agreed to acquire a 51% stake in Diamond Lake Minerals, a company focused on digital assets, laying the groundwork for strategic restructuring and transformation into an Altcoin treasury business. The transaction was announced on Monday, and after completion, Diamond Lake Minerals will be renamed DiamondLake and shift its business focus to building a cryptocurrency treasury business. This strategy is inspired by the corporate treasury strategy of Bitcoin-heavy enterprise Strategy, but replaces Bitcoin with emerging Altcoins.
Diamond Lake Minerals' recent stock price was $3.96 per share, and the transaction's valuation may exceed $70 million. The transaction is expected to be completed within 20 days, subject to standard conditions. Unicoin's CEO Alex Konanykhin views this acquisition as a bet on the future of cryptocurrency. He noted that legislative progress, such as the recently passed GENIUS Act by the US Senate, could potentially unleash massive potential for Altcoins.
The new company will focus on tokenizing real-world assets (RWA) and making them accessible to ordinary investors. This acquisition occurs one month after the US Securities and Exchange Commission (SEC) sued Unicoin and three of its executives, including Konanykhin. The SEC accused the company of illegally raising over $100 million through "massive securities fraud".
The regulators claimed that Unicoin misled investors, exaggerated real estate valuations, and promoted unrealistic high returns (such as "9 million times returns") through aggressive marketing. The SEC is seeking the return of illegal gains and civil penalties. Konanykhin rejected these allegations as "completely false" and believes that even though the regulatory body has dropped cases against companies like Coinbase, Kraken, and Uniswap, the SEC continues to suppress cryptocurrency companies.
He rejected the SEC's settlement meeting request from April, calling the proposed conditions "unacceptable". In a letter to shareholders, he stated that Unicoin has always complied with US regulations and accused the SEC investigation of causing "billions of dollars in losses" to the company.
