David Bailey built Nakamoto Holdings as a Bitcoin treasury company modelled on Strategy's playbook, raise capital through equity markets, buy Bitcoin, hold it. The company was created through
David Bailey built Nakamoto Holdings as a Bitcoin treasury company modelled on Strategy's playbook, raise capital through equity markets, buy Bitcoin, hold it.
The company was created through the merger of Bailey's Nakamoto Holdings with healthcare company KindlyMD, backed by a $510 million private investment and $200 million in convertible notes.
As reported by Bloomberg, Nakamoto's stock has since collapsed approximately 99% from its 2025 peak.
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The company reported a net loss of $371.8 million for the first six months of 2026, according to its latest SEC filing. By the end of June it held approximately 4,467 Bitcoin worth roughly $261.5 million, and $19.1 million in cash against $164.7 million in total debt.
The collapse in Nakamoto's stock forced the company to carry out a 1-for-40 reverse split in May 2026 to regain compliance with Nasdaq's $1 minimum bid-price requirement, reducing outstanding shares from approximately 696.1 million to roughly 17.4 million, according to the SEC filing in May.
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Bailey told Bloomberg the company is now looking for acquisitions that can improve income and cash flow while supporting its broader Bitcoin strategy, a significant departure from the equity-issuance model it relied on to accumulate Bitcoin.
“We’re looking at businesses that can help us improve our income and our cash flow at the company. We’re looking at businesses that have strategic value to Bitcoin as a whole,” Bailey told Bloomberg.
With the stock trading below the value of its Bitcoin holdings, issuing new shares to finance additional cryptocurrency purchases has become economically unviable.
Pressure on the balance sheet has already forced concrete action. Nakamoto sold roughly 600 Bitcoin and related derivative positions for approximately $48 million in net proceeds, using most of the money to repay $45 million of Bitcoin-backed debt.
The board authorized a buyback of up to $25 million in June, while the company also reduced debt and extended about 105 million USDT of principal until June 2027, according to the company announcement.
The company completed acquisitions of BTC Inc. and UTXO Management in February, issuing stock valued at approximately $81.6 million, bringing Bailey's own media and investment businesses under the Nakamoto umbrella, according to another statement by the company.
Nakamoto's troubles are part of a wider reversal for Bitcoin treasury stocks. According to a report by the Financial Times, companies built around holding Bitcoin had lost more than $80 billion in market value since mid-2025 as premiums over their cryptocurrency holdings disappeared.
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