In the world of cryptocurrencies, there has been a shocking collapse: shares of Nakamoto (NASDAQ: NAKA), the bitcoin holding company of David Bailey, have depreciated by 95% over three months. From a peak of $35 at the beginning of June, the share price has plunged to a pathetic $1.3, as reported by Nasdaq and TradingView. The company, founded by Bailey — CEO of Bitcoin Magazine and advisor to Trump on crypto — emerged from the merger of the medical provider Kindly MD with Nakamoto Holdings, focusing on accumulation $BTC as a strategic reserve.
This collapse was the culmination of a series of events that undermined investor confidence. After the merger in the summer, Nakamoto planned to become the "bitcoin treasury of treasuries", investing in a global network of companies with BTC reserves. Bailey ambitiously announced plans to buy $1 billion worth of bitcoin, inspired by the success of MicroStrategy’s Michael Saylor. However, the market reacted differently: the multiple to net asset value (mNAV) fell from 23x to 0.82x, while the total market capitalization was only $1.4 billion compared to $642 million in BTC assets.
On September 15, Bailey published a controversial letter to investors, warning of increasing volatility due to the sale of 80 million shares. "We will get through this quickly," he wrote on X, acknowledging mistakes in strategy. Critics accuse the company of "toxic funding" and confusion with "failed altcoins", overshadowing the bitcoin narrative. Thousands of investors, including Jameson Lopp and Adam Back, are watching the fate of NAKA in audio spaces on X.
This incident highlights the risks of bitcoin strategies for public companies: from euphoria to collapse in a matter of months. Nakamoto is aiming for a "bitcoin-native financial institution", but recovery seems distant. Bailey promises "disciplined execution", but the market is skeptical. The event signals a reassessment of the BTC treasury trend, where ambitions collide with Wall Street reality.
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