Nakamoto Holdings, the Bitcoin treasury firm led by Bitcoin Magazine CEO David Bailey, has experienced a drastic decline in its stock, plummeting over 98% since its peak in May due to a surge in investor selling tied to its $563 million private investment in public equity (PIPE) deals.
The company, which merged with Utah-based healthcare provider KindlyMD earlier this year, has become one of the few publicly traded firms operating as a Bitcoin (BTC) holding company.
However, its financing strategy, which involved offering heavily discounted shares to private investors to fund Bitcoin acquisitions, backfired when a large volume of PIPE shares became available for sale in September. This resulted in a deluge of sell orders that drastically lowered the stock price, wiping out billions in market value, Bailey stated in a recent interview with Forbes.
Bailey, recognized for his prominent role within the Bitcoin community and connections to US President Donald Trump’s pro-crypto initiatives, has characterized the downturn as a part of a long-term strategy. “Individuals seeking quick trades are actually costly capital for us,” he told Forbes, advocating for “long-term aligned partners.”
Related: KindlyMD shares drop amid $5B stock offering for Bitcoin acquisition
Nakamoto holds 5,765 BTC valued at $653 million
Despite the downturn, Nakamoto maintains a holding of 5,765 Bitcoin, estimated at around $653 million, on its balance sheet. According to BitcoinTreasuries.NET, this positions Nakamoto as the 19th largest public Bitcoin holder.
Bailey mentioned plans to integrate several of his other ventures, including Bitcoin Magazine, the Bitcoin conference, and hedge fund 210k Capital, into Nakamoto to enhance the company’s cash flow and reinforce its status as a Bitcoin-focused conglomerate.
The firm’s stock, trading on Nasdaq under the ticker NAKA, remains significantly discounted compared to its Bitcoin assets. It is currently priced around $0.9480, down from its May high of $25, according to data from Yahoo! Finance.
Related: Convertible Note Deals Affect IREN and Kindly MD Stocks
Metaplanet initiates $500 million buyback to enhance share value
Nakamoto is not the only Bitcoin holder under pressure. On Tuesday, Tokyo-listed Bitcoin treasury company Metaplanet revealed a 75 billion yen ($500 million) stock repurchase program to support its share price after it fell below the company’s Bitcoin-backed net asset value (mNAV).
The board-sanctioned buyback will allow the firm to repurchase up to 150 million shares (13.13%) through the Tokyo Stock Exchange until October 2026.
Metaplanet’s mNAV recently dipped to 0.88 before recovering to 1.03, prompting the firm to halt new Bitcoin acquisitions. It currently possesses 30,823 BTC valued at approximately $3.5 billion.
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