Bitcoin Treasury Firm Nakamoto Holdings Suffers Major Stock Decline
According to CoinTelegraph, Nakamoto Holdings stock fell over 98 percent. The price dropped from a May high of 25 dollars to about 0.9480 dollars. This event took place on Nasdaq.
David Bailey heads the company. He serves as CEO of Bitcoin Magazine. Nakamoto merged with Utah-based KindlyMD earlier this year. The firm operates as a Bitcoin treasury entity.
The decline followed 563 million dollars in PIPE deals. These involved sales of discounted shares to private investors. Shares became eligible for resale in September. Investors then executed large sell orders. Nakamoto holds 5,765 Bitcoin tokens. These are valued at around 653 million dollars.
Why This Matters
The stock drop affects Nakamoto Holdings directly. It reduces market capitalization by billions. Shareholders face losses from the rapid decline. The company plans to integrate other ventures like Bitcoin Magazine.
Private investors from PIPE deals gained from sales. This created pressure on the stock price. Nakamoto ranks as the 19th largest public Bitcoin holder. Readers with exposure to similar firms may see risks in funding models.
Bloomberg states that shares in some treasuries traded down as much as 97 percent below issue. This reflects challenges after PIPE financing. As we covered, crypto infrastructure remained resilient during the October 2025 market wipeout. Matt Hougan noted no major institutional failures occurred.
Industry Implications
This event questions the Bitcoin treasury model in public markets. Other firms may face similar sell-offs after financing. Corporate Bitcoin purchases fell 76 percent from July to September 2025.
The competitive landscape shifts for treasury entities. Metaplanet, a Tokyo-listed firm, launched a 500 million dollar share repurchase. This aims to address discounts to net asset value. Traditional institutions observe these developments. They assess risks in crypto adoption.
Reuters reports a 19 billion dollar liquidation in October 2025. Bitcoin fell 14 percent due to trade tensions. Positive views highlight quick recoveries in platforms. Skeptical perspectives point to leverage vulnerabilities. Global trends show reduced treasury buying. This may slow sector growth.
