tl;dr
Nakamoto Holdings' stock plummeted 98% from its May 2023 high after a $563 million PIPE deal flooded the market, erasing billions in value. The firm, led by David Bailey, faces turmoil despite holding 5,765 Bitcoin. Similar challenges hit Metaplanet, which launched a $500 million share repurchase to...
**Nakamoto Holdings' Stock Plummets 98% Amid Bitcoin Treasury Turmoil**
Nakamoto Holdings, the Bitcoin treasury firm led by *Bitcoin Magazine* CEO David Bailey, has faced a catastrophic stock crash, with shares falling over 98% from their May 2023 high. The collapse is tied to a controversial $563 million private investment in public equity (PIPE) deal that flooded the market with shares, triggering a sell-off that erased billions in market value.
The company, which merged with Utah-based healthcare operator KindlyMD earlier this year, positioned itself as one of the few publicly traded firms structured as a Bitcoin BTC $110,245 holding company. However, its financing model—selling heavily discounted shares to private investors to fund Bitcoin purchases—backfired when a large batch of PIPE shares became eligible for sale in September. This triggered a “flood of sell orders,” according to Bailey, who described the fallout in a recent *Forbes* interview.
**A Long-Term Vision Amid the Crisis**
Despite the turmoil, Bailey has framed the downturn as part of a broader, long-term strategy. “People that are just looking for a trade are actually very expensive capital for us,” he told *Forbes*, emphasizing the need for “long-term aligned partners.” Nakamoto continues to hold 5,765 Bitcoin, valued at approximately $653 million, making it the 19th largest public Bitcoin holder, per BitcoinTreasuries.NET.
Bailey plans to consolidate his other ventures—*Bitcoin Magazine*, the Bitcoin conference, and hedge fund 210k Capital—into Nakamoto to strengthen its cash flow and cement its identity as a Bitcoin-first conglomerate. However, the company’s stock, which trades on Nasdaq under the ticker **NAKA**, remains deeply undervalued. It currently trades at $0.9480, down from a May high of $25, according to Yahoo! Finance.
**Broader Challenges in the Bitcoin Treasury Sector**
Nakamoto is not alone in grappling with market volatility. Tokyo-listed Bitcoin treasury firm Metaplanet recently announced a 75 billion yen ($500 million) share repurchase program to stabilize its share price after it fell below the company’s Bitcoin-backed net asset value (mNAV). The buyback, approved by the board, allows Metaplanet to repurchase up to 13.13% of its shares through the Tokyo Stock Exchange until October 2026.
Metaplanet’s mNAV—a metric reflecting the value of its Bitcoin reserves—recently dipped to 0.88 before rebounding to 1.03, prompting the firm to pause new Bitcoin purchases. It currently holds 30,823 BTC, valued at around $3.5 billion.
**The Road Ahead**
The challenges faced by Nakamoto and Metaplanet underscore the risks inherent in Bitcoin treasury models, which rely on volatile asset prices and complex financing structures. For Nakamoto, the path forward hinges on attracting long-term investors and leveraging its substantial Bitcoin holdings to rebuild confidence. As Bailey noted, the journey is as much about patience as it is about strategy.
In a market where Bitcoin’s price swings can make or break even the most well-capitalized firms, Nakamoto’s ability to navigate this crisis may determine its place in the evolving landscape of crypto-driven enterprises.