# Nakamoto Inc. financial instability and stock collapse > Live situation record from CLSTR: https://clstr.news/situations/nakamoto-inc-financial-instability-and-stock-collapse > Updated: 2026-09-02T15:31:58.000Z. Sources: 7. Developments: 2. Nakamoto Inc., a Bitcoin treasury company, has faced severe financial instability regarding its debt obligations and business model. In August 2026, regulatory filings revealed the company faced a 60 million USDT Bitcoin-backed credit facility obligation due on December 4. At the end of June, the company’s combined cash and unencumbered Bitcoin totaled approximately $57.8 million, narrowly trailing the upcoming debt. Much of its Bitcoin holdings, valued at roughly $222.7 million, were pledged to the Kraken exchange as collateral. Following these liquidity concerns, the company’s stock collapsed approximately 99% from its May 2025 peak. The company’s strategy of issuing equity at a premium to its Bitcoin holdings failed, resulting in a market-to-net asset value of less than 1x. Nakamoto reported combined net losses of approximately $371.8 million during the first and second quarters of 2026. To preserve its Nasdaq listing, the company implemented a 1-for-40 reverse stock split and shifted its focus from Bitcoin accumulation toward buybacks and cash-generating acquisitions. ## Timeline ### 2026-09-02: Nakamoto Inc. stock collapses 99% as Bitcoin treasury model fails Bitcoin treasury firm Nakamoto Inc. has seen its stock plummet 99% from its peak, with its market value now falling below the value of its Bitcoin holdings. 7 sources. https://clstr.news/cluster/nakamoto-inc-stock-collapses-99-as-bitcoin-treasury-model-fails ### 2026-08-16: Nakamoto faces $60 million USDT debt obligation in December Nakamoto, parent of Bitcoin Magazine, faces a 60 million USDT debt due in December, with liquid reserves narrowly trailing the obligation as most of its Bitcoin remains pledged as collateral. 4 sources. https://clstr.news/cluster/nakamoto-faces-60-million-usdt-debt-obligation-in-december --- Cite as: Nakamoto Inc. financial instability and stock collapse. CLSTR, https://clstr.news/situations/nakamoto-inc-financial-instability-and-stock-collapse