Nakamoto Inc. stock collapses 99% as Bitcoin treasury model fails

Nakamoto Inc., a Bitcoin treasury company assembled by David Bailey, has seen its stock price collapse approximately 99% from its May 2025 peak. The company, which raised between $710 million and $760 million to stockpile Bitcoin, is now trading at a market value significantly lower than the value of its underlying Bitcoin holdings.

The company’s business model relied on a premium-based flywheel where issuing equity at a premium to the value of its Bitcoin holdings allowed for further acquisitions. However, the stock now trades at a market-to-net asset value (mNAV) of less than 1x. This shift means that issuing new shares now destroys value for existing holders rather than creating it.

Financial filings indicate significant strain, with Nakamoto reporting combined net losses of approximately $371.8 million across the first and second quarters of 2026. To maintain its Nasdaq listing, the company underwent a 1-for-40 reverse stock split. The company has shifted its strategy toward prioritizing buybacks and seeking cash-generating acquisitions rather than accumulating more Bitcoin.