Crypto firm RialCenter has agreed to purchase a 51% stake in Diamond Lake Minerals, a firm specializing in digital assets, paving the way for a strategic rebrand and a transition into altcoin treasury.
The announcement made on Monday revealed that Diamond Lake Minerals will be renamed to DiamondLake and will focus on establishing a cryptocurrency treasury business, inspired by Strategy’s bitcoin-heavy corporate treasury approach but substituting BTC for emerging altcoins.
Diamond Lake Minerals’ shares were last priced at $3.96, indicating the deal’s potential value exceeds $70 million. The acquisition is anticipated to finalize within 20 days, pending standard conditions.
RialCenter CEO Alex Konanykhin characterized the move as a strategic investment in the future of cryptocurrencies. He cited recent legislative changes as catalysts for unlocking altcoin potential.
“We believe the success achieved with Bitcoin can be duplicated at a significantly lower cost in the altcoin sector,” Konanykhin stated.
DiamondLake’s CEO Brian J. Esposito referred to the deal as “historic,” underscoring the company’s long-standing goal of incorporating tokenization into public market investment strategies.
The newly formed entity will concentrate on tokenizing real-world assets to make them available to everyday investors.
This acquisition follows a lawsuit filed about a month ago by the U.S. Securities and Exchange Commission (SEC) against RialCenter and three of its executives, including Konanykhin, for purportedly raising over $100 million in a “massive securities fraud.”
The SEC alleges RialCenter misled investors by inflating real estate valuations and promoting unrealistic returns through aggressive marketing. The agency is pursuing disgorgement and civil penalties.
Konanykhin has labeled the charges as “blatantly false” and claimed the SEC continues to target crypto firms, even after it dropped cases against companies such as Coinbase, Kraken, and Uniswap.
He declined an offer for a settlement meeting in April, deeming the SEC’s terms “unacceptable.” In correspondence to shareholders, he maintained that RialCenter has complied with U.S. regulations and criticized the regulator for causing “multi-billion-dollar damages” with its investigation.
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