tl;dr
Nakamoto Holdings, a Bitcoin-focused treasury firm, saw its stock drop 98% after a $563 million PIPE deal backfired in September 2023, triggering a sell-off. The company, which holds 5,765 BTC, now faces scrutiny as competitors like Metaplanet launch share buybacks to stabilize prices. Its stock fel...
**Nakamoto Holdings Faces Massive Stock Collapse Amid Bitcoin Treasury Struggles, as Competitors Seek Stability**
Nakamoto Holdings, the Bitcoin-focused treasury firm led by David Bailey, co-founder of *Bitcoin Magazine*, has experienced a staggering 98% decline in its stock price since its May 2023 high, sparking questions about the risks of Bitcoin-centric investment strategies. The collapse is linked to a controversial $563 million private investment in public equity (PIPE) deal, which backfired when a large volume of shares became tradable in September, triggering a sell-off that eroded 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 holding company. However, its financing model—selling heavily discounted shares to private investors to fund Bitcoin purchases—proved problematic. When the PIPE shares became eligible for sale, a flood of sell orders sent the stock plunging. As Bailey told *Forbes* in a recent interview, “People that are just looking for a trade are actually very expensive capital for us,” emphasizing his call for “long-term aligned partners.”
Despite the turmoil, Nakamoto remains a significant Bitcoin holder, with 5,765 BTC (valued at approximately $653 million) on its balance sheet. According to *BitcoinTreasuries.NET*, this places Nakamoto as the 19th largest public Bitcoin holder. Bailey has since announced plans to consolidate his other ventures—including *Bitcoin Magazine*, a Bitcoin conference, and the hedge fund 210k Capital—into Nakamoto, aiming to strengthen its cash flow and solidify its identity as a Bitcoin-first conglomerate.
The company’s stock, which trades on Nasdaq under the ticker **NAKA**, has plummeted to $0.9480, down from a May high of $25. This stark drop underscores the challenges of balancing volatile crypto assets with traditional equity markets.
Meanwhile, other Bitcoin treasury firms are grappling with similar pressures. Tokyo-listed Metaplanet, a Bitcoin-focused firm, recently launched 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 150 million shares (13.13% of its total) through the Tokyo Stock Exchange until October 2026.
Metaplanet’s mNAV—its market net asset value—dipped to 0.88 before rebounding to 1.03, prompting the company to pause new Bitcoin purchases. The firm currently holds 30,823 BTC, valued at around $3.5 billion.
The situations of Nakamoto Holdings and Metaplanet highlight the precariousness of Bitcoin treasury models, where the interplay between crypto assets and stock market dynamics can lead to extreme volatility. While Nakamoto’s leadership remains bullish on long-term Bitcoin adoption, the recent setbacks underscore the risks of leveraging discounted equity financing in a market as unpredictable as cryptocurrency. As both companies navigate these challenges, their strategies will likely serve as case studies for the broader crypto-investor community.