Nakamoto Inc. Stock Plummets 99% as Company Shifts Strategy

Nakamoto Inc. (NASDAQ:NAKA), a Bitcoin treasury company founded by David Bailey, has faced a significant downturn after its stock peaked at an announcement in May 2025. The company's share price plummeted 99% since then, wiping out the premium investors initially paid to own Bitcoin through a publicly traded vehicle.

The core issue lies in the fact that Nakamoto's stock now trades below the value of its actual Bitcoin holdings, breaking the financing model that powered companies like Strategy (NASDAQ:MSTR). When a Bitcoin treasury stock trades at a premium, it can issue new shares to buy more Bitcoin profitably. However, at a discount, this math no longer works.

Nakamoto carried out a 1-for-40 reverse stock split in May to meet Nasdaq's minimum bid-price requirements. For the first half of 2026, the company reported losses of around $372 million.

David Bailey spoke at the Bitcoin Asia conference, stating that buying Bitcoin at its peak was the main mistake. Instead of issuing more stock or taking on debt to accumulate Bitcoin, Nakamoto is now focused on acquiring companies that generate cash and use operating income to fund future Bitcoin purchases.