Unicoin Acquires Majority Stake in Diamond Lake, to Launch Cryptocurrency Reserve Strategy

BlockBeats News, June 23rd, Cryptocurrency company Unicoin announced that it has agreed to acquire a 51% stake in the digital asset-focused company Diamond Lake Minerals, laying the foundation for strategic reshaping and transformation towards the meme coin treasury business. The transaction was announced on Monday, and following the completion of the transaction, Diamond Lake Minerals will be renamed DiamondLake and shift its focus to building a cryptocurrency treasury business. This strategy is inspired by the Bitcoin-heavy corporate treasury strategy of the company Strategy but replaces Bitcoin with emerging meme coins.

Diamond Lake Minerals recently traded at $3.96 per share, valuing the deal at over $70 million. The transaction is expected to be completed within 20 days, subject to customary conditions. Unicoin CEO Alex Konanykhin sees this acquisition as a bet on the future of cryptocurrency. He noted that recent legislative developments, such as the "Guiding and Encouraging New States Stablecoin Innovation Act" (GENIUS Act) passed by the U.S. Senate, could unlock significant potential for meme coins.

The new company will focus on the tokenization of real-world assets (RWA) and make them accessible to retail investors. This acquisition comes after the U.S. Securities and Exchange Commission (SEC) sued Unicoin and its three executives (including Konanykhin) a month ago. The SEC accused the company of illegally raising over $100 million through "significant securities fraud."

Regulators stated that Unicoin misled investors, exaggerated real estate valuations, and promoted unrealistic high returns through aggressive marketing, such as claiming "9,000,000x returns." The SEC is seeking to return the illegal proceeds and impose civil penalties. Konanykhin has refuted these allegations, calling them "completely false," and believes that even though the SEC has dropped cases against companies like Coinbase, Kraken, and Uniswap, the SEC is still targeting cryptocurrency companies.

He has rejected the SEC's settlement meeting request made in April this year, stating that the conditions proposed were "unacceptable." In a letter to shareholders, he stated that Unicoin has always complied with U.S. regulations and blamed the SEC's investigation for causing "billions of dollars in losses" to the company.