Unicoin Inc. has struck a major deal to acquire a controlling 51% stake in Diamond Lake Minerals Inc. (OTC: DLMI) for approximately $70 million, setting the stage for an ambitious pivot into the digital asset treasury business.
The transaction, expected to close within 20 days, will see Diamond Lake rebrand as DiamondLake Inc. and shift its focus from traditional minerals to building a cryptocurrency treasury centered on emerging altcoins rather than Bitcoin.
This strategic move positions the combined entity to capitalize on what executives believe is an undervalued altcoin market poised for explosive growth as regulatory clarity improves and institutional adoption accelerates.
The acquisition represents Unicoin’s bold attempt to replicate MicroStrategy’s legendary Bitcoin accumulation strategy, but with a twist that could prove far more lucrative. While Strategy has deployed over $40 billion to amass Bitcoin and achieve a $106 billion valuation, Unicoin CEO Alex Konanykhin argues that similar results can be achieved “much more cost-efficiently in the alt-coin segment.”
The timing appears strategic, coinciding with the recent passage of the GENIUS Act through the Senate and other positive regulatory developments that could unlock significant value in alternative cryptocurrencies that have been overshadowed by Bitcoin’s dominance.
Market Fragmentation Opportunity
DiamondLake’s treasury strategy specifically targets what executives see as Bitcoin’s inevitable decline in market dominance as governments and financial institutions launch their own digital currencies. The company plans to capitalize on increasing market fragmentation by securing early positions in promising altcoins before they achieve mainstream recognition.
“While the alt-coin market was drowning in meme-driven speculation, we saw a future,” said Silvina Moschini, Unicoin’s co-founder and Chief Strategy Officer. “We’re building the world’s first Digital Asset Treasury that transforms speculation into strategic wealth creation.”
The strategy addresses perceived limitations in Bitcoin’s technology, including scalability issues and high operational costs, by diversifying into next-generation cryptocurrencies that could capture market share as the digital asset ecosystem matures.
DiamondLake CEO Brian J. Esposito emphasized the company’s mission to “unlock global liquidity and provide the 99%-ers of the world with access to wealth-building investments traditionally out of reach” through innovative tokenization of real-world assets and securities.
SEC Legal Battle
The ambitious expansion comes amid significant regulatory headwinds, as Unicoin and three executives including CEO Konanykhin face SEC charges for allegedly conducting a “massive securities fraud” that raised over $100 million.
The agency claims Unicoin misled investors by inflating real estate valuations and promoting unrealistic returns, including alleged gains of 9 million percent through aggressive marketing campaigns. The SEC is seeking disgorgement and civil penalties in the ongoing case.
Konanykhin has vigorously disputed the charges as “blatantly false,” arguing that Unicoin has complied with US regulations and accusing the SEC of continuing its “War on Crypto” despite dropping cases against major firms like Coinbase, Kraken, and Uniswap.
Despite the legal challenges, the DiamondLake acquisition signals Unicoin’s determination to execute its vision of becoming a dominant force in the evolving digital asset landscape, betting that regulatory clarity and institutional adoption will ultimately vindicate its altcoin-focused treasury strategy.
