Nakamoto, a Bitcoin treasury company backed by crypto entrepreneur David Bailey, has seen its shares plunge 99% from peak since its May 2025 public listing, forcing a pivot toward cash-generating acquisitions and share buybacks.
Macro & Markets ·
Nakamoto, a Bitcoin treasury company backed by crypto entrepreneur David Bailey, has experienced a severe equity collapse since going public. According to reporting, the company raised approximately $760 million ahead of its May 2025 merger and public listing, but its shares have declined roughly 99% from peak valuations, invalidating its original strategy of using equity issuance to build Bitcoin reserves. The deterioration has forced a strategic shift toward acquisition targets that generate cash flow and toward repurchasing shares.
The financial strain is evident in recent results. Nakamoto reported a loss of approximately $372 million during the first half of 2026 and executed a 1-for-40 reverse stock split in May to manage the equity structure. These measures signal an attempt to stabilize the company's financial position as the equity approach to Bitcoin accumulation has become untenable.
It remains unclear whether the cash-acquisition pivot can restore investor confidence or generate sufficient revenue to offset the company's losses. The extent to which Nakamoto's challenges reflect broader market conditions versus company-specific execution issues is not specified in available reporting.