Nakamoto's $510 Million Bet on Bitcoin Treasury Model Implodes
David Bailey's crypto company Nakamoto has been severely impacted by the decline in Bitcoin prices and investor enthusiasm for digital-asset treasury companies. As a result, the company is shifting its focus away from the financing model that once made it one of the most prominent Bitcoin treasury companies.
Nakamoto was created through the merger of Bailey's Nakamoto Holdings with healthcare company KindlyMD in 2025, backed by a $510 million private investment and $200 million in convertible notes. However, the company's finances deteriorated sharply as Bitcoin prices fell, leading to a net loss of $371.8 million for the first six months of 2026.
The collapse in Nakamoto's stock has forced the company to reduce leverage rather than keep accumulating Bitcoin. In June, Nakamoto sold roughly 600 Bitcoin and related derivative positions for about $48 million in net proceeds, using much of the money to repay $45 million of Bitcoin-backed debt.