Wall street analyst sees 4x upside in beaten down stock

A little-known stock tied to Bitcoin accumulation is drawing attention from Wall Street, as analysts begin to outline a high-risk, high-reward thesis around the emerging “digital asset treasury” model.

After months of steep declines and delisting concerns, some analysts now argue the sell-off may have gone too far, creating what they describe as asymmetric upside if crypto markets stabilize.

The renewed interest comes as institutional coverage expands beyond industry leaders, signaling that smaller Bitcoin-linked equities may be entering the next phase of investor scrutiny.

Related: Bitcoin treasury companies survived the drawdown. Now they head to Vegas

Analyst initiates coverage with 4x upside target

Siebert Financial Corp. initiated coverage on April 20, 2026, with a “Buy” rating on Nakamoto Inc. (NAKA), assigning a $1 price target against a current price near $0.24, implying roughly 4x upside.

The report frames the company as an “early-stage Bitcoin treasury play,” highlighting its discounted valuation following a prolonged drawdown.

The firm’s market capitalization sits around $160–$200 million, underscoring its small-cap, high-volatility profile.

The bullish call follows a similar move by TD Cowen earlier in April, which also initiated coverage with a “Buy” rating, arguing that digital asset treasury firms “could command increasing investor attention over time."

From healthcare firm to Bitcoin treasury 

Nakamoto’s current strategy stems from a dramatic pivot completed in 2025, when the company merged with Bitcoin-focused Nakamoto Holdings and transitioned away from its healthcare roots.

The firm formally rebranded on Jan. 21, 2026, to align with its new direction, with CEO David Bailey stating the move was designed to “eliminate ambiguity” and reinforce its identity as a Bitcoin-native company.

The shift mirrors the playbook popularized by Strategy (formerly MicroStrategy), where companies leverage balance sheets to accumulate Bitcoin as a primary treasury asset.

Nakamoto has since expanded its ecosystem through acquisitions of BTC Inc. and UTXO Management, positioning itself as a vertically integrated Bitcoin business spanning media, capital markets and asset management.

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High risk, high reward 

The company holds approximately 5,398 BTC, worth roughly $480 million, placing it among the top 20 public Bitcoin holders globally. However, this remains a fraction of Strategy’s holdings, which dominate the sector by a wide margin.

Nakamoto has raised roughly $740 million to fund Bitcoin purchases and related investments, but its stock has plunged about 95% from its 2025 peak and continues to trade below $1.

The company faces a Nasdaq compliance deadline of June 8, 2026, requiring shares to remain above $1 for at least 10 consecutive days to avoid delisting. It also reported a $142.6 million loss in the fourth quarter of 2025 tied to Bitcoin price declines.

As of April 21, NAKA traded near $0.23, down around 3% on the day, while Bitcoin hovered around $76,700, down 0.18% over the same period.

Related: Saylor's Strategy might actually surpass Satoshi's Bitcoin holdings