Bitcoin Treasury Nakamoto Down 99%, Now Selling Its Own BTC

• Nakamoto shares have fallen roughly 99% from their May 2025 peak.
• The company sold Bitcoin at a heavy realized loss to fund operations.
• A 1-for-40 reverse split was needed to keep the Nasdaq listing.
• Bailey acquired two of his own companies with diluted public stock.

Nakamoto Inc. (Nasdaq: NAKA), the Bitcoin treasury company assembled by BTC Inc. founder David Bailey, has seen its stock decline about 99% from the $34.77 peak it hit after the May 2025 merger announcement with healthcare operator KindlyMD. Bloomberg reported this week that the roughly $760 million Bailey raised, a figure the company’s own filings put closer to $710 million, to stockpile Bitcoin has produced a company trading near $7.12 per share, worth around $127.4 million, now hunting cash-generating acquisitions and prioritizing buybacks instead of adding coins.

Bailey spent 2024 lobbying Donald Trump toward a pro-crypto position and largely succeeded. His hedge fund, 210k Capital, returned 640% backing companies that pivoted to Bitcoin treasuries. Political access converted into policy. It did not convert into a share price.

The mNAV flywheel prints money on the way up and eats itself on the way down

The model was straightforward. Issue equity at a premium to the Bitcoin backing it, buy more Bitcoin with the proceeds, watch the premium expand, repeat. That premium is measured as mNAV, the ratio of what the market pays for the company against the dollar value of the Bitcoin it holds. Nakamoto once traded at roughly 23 times the value of its holdings. It now trades below 1.

Below 1, every new share issued transfers value away from existing holders rather than creating it. The flywheel does not decelerate. It runs backwards, and it does so at the precise moment the company most needs capital.

MetricAt the topTodayShare price$34.77 (May 2025)~$7.12 post-splitMarket capMulti-billion~$127.4MShares outstanding~696M~17.4MmNAV~23xBelow 1xQ1 2026 revenue vs loss–$2.3M vs $238M

Bought at $118,171, sold at $70,000 to make payroll

In March 2026 Nakamoto disclosed it had sold roughly 284 BTC for about $20 million, at an average near $70,000 per coin. Against a weighted-average purchase price of $118,171, that is a realized loss of about 40%. The proceeds funded working capital and the newly acquired businesses.

For a company whose entire premise was permanent accumulation, selling coins to cover operations confirms that the financing channel closed. The first half of 2026 produced a $372 million net loss. Roughly 5,765 BTC remain, worth about $454 million with Bitcoin near $78,800, some pledged under overcollateralized loan agreements that critics argue could be forfeited in a deeper drawdown.

A special committee, a fairness opinion, and 58% dilution

On February 20, 2026, Nakamoto closed its acquisition of BTC Inc., publisher of Bitcoin Magazine and operator of the Bitcoin Conference, alongside UTXO Management, adviser to 210k Capital. Securityholders received 364,795,104 shares valued at $81.63 million based on the previous day’s $0.248 close.

Bailey founded both targets and chairs the buyer. Independent directors formed a special committee and retained B. Riley for a fairness opinion, which is the procedural answer to the obvious objection. It does not change the outcome for public holders, who absorbed roughly 58% dilution in one quarter while the cash they had originally supplied sat in Bitcoin bought near the top. DL News called the structure a theater of the absurd.

The assets themselves generate real money: about $80.5 million in combined revenue and $34.2 million in EBITDA for the twelve months to September 2025.

MAY 2025

KindlyMD merger announced. Stock peaks at $34.77.

AUGUST 2025

Merger completes. The PIPE unlock triggers a 96% collapse.

FEBRUARY 2026

BTC Inc. and UTXO acquired for $81.6 million in stock.

MARCH 2026

284 BTC sold for $20 million to fund operations.

MAY 22, 2026

1-for-40 reverse split restores Nasdaq compliance. 

Spot ETFs removed the reason to pay the toll

Nakamoto was not uniquely reckless. It was simply the most exposed to a sector-wide repricing, one that left 77% of corporate Bitcoin treasury companies underwater. Through 2024 and early 2025, small-cap issuers such as Metaplanet in Japan announced treasury pivots and watched their shares trade far above the dollar value of the Bitcoin on their books. Investors were paying for access.

Direct custody and spot ETFs made that access free. When the premium compressed, firms funded with cheap convertible debt kept their optionality. Firms funded by selling richly valued equity lost the ability to raise anything at all.

Bailey is buying the stock he told traders to sell

Bailey has rejected the scam allegations, calling the criticism noise and arguing at Bitcoin Asia 2026 that corporate adoption remains necessary for broader Bitcoin uptake. He bought 191,448 shares on the open market in late May at an average of $5.19, lifting his stake to roughly 18.25%.

The legacy healthcare clinics closed in June 2026 and the company now presents itself as an operator of Bitcoin-native media, asset management, and advisory businesses. Whether that framing holds depends on the loan agreements attached to the remaining treasury, which have not been publicly renegotiated and carry collateral thresholds that a further Bitcoin decline would test long before any media revenue reaches the bottom line.

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