Nakamoto Shares Plummet Over 99% as Bitcoin Treasury Strategy Crashes
Nakamoto Shares Plummet Over 99% From Peak as Bitcoin Treasury Strategy Fails
The shares of Nakamoto, a company led by David Bailey, have plummeted more than 99% from their peak value last year. This dramatic collapse illustrates the severe decline in value of publicly traded Bitcoin treasury companies. Nakamoto's shares surged after it announced its merger with Nakamoto Holdings in May 2025, as investors became enthusiastic about its Strategy-style model of raising capital to accumulate Bitcoin.
However, this enthusiasm has reversed almost completely. After adjusting for the company's 1-for-40 reverse stock split in May 2026, Nakamoto's 52-week trading range extended as high as approximately $659, compared with recent prices in the mid-single digits. The collapse has erased more than 99% of the stock's peak value, despite Nakamoto transforming itself into a broader Bitcoin operating company.
The company's difficulties have been amplified by leverage and falling Bitcoin prices. As of June 30, Nakamoto held 4,467 BTC, worth approximately $261.5 million at quarter-end. However, about 85% of its treasury, or 3,805 BTC, was pledged as collateral against debt. Nakamoto reported $164.7 million of debt and just $19.1 million of cash at the end of the second quarter, resulting in a net-leverage-to-digital-assets ratio of 56%. The company has already shrunk its Bitcoin holdings by selling approximately 600 BTC and certain derivative positions during Q2.
David Bailey is responding to the crisis by emphasizing that Nakamoto is no longer simply a leveraged Bitcoin treasury vehicle. In February, the company completed acquisitions of BTC Inc., parent of Bitcoin Magazine and the Bitcoin Conference, and UTXO Management. These businesses added media, events, asset management, and advisory operations alongside the Bitcoin treasury. The strategy showed some progress during Q2, with Nakamoto reporting its first positive adjusted operating income since becoming an integrated Bitcoin company.