Bitcoin Treasury Firm Nakamoto Faces 99% Stock Collapse as Accumulation

Nakamoto Inc., the Bitcoin treasury company led by crypto entrepreneur David Bailey, has seen its shares collapse about 99% from their peak, putting pressure on the strategy that originally relied on issuing equity to finance additional Bitcoin purchases.

According to Coin Bureau, Bailey raised roughly $760 million for Nakamoto to build a large Bitcoin treasury. But with NAKA now trading below the value of its Bitcoin holdings, the company has lost an important financial advantage: the ability to issue shares at a premium to its underlying assets and use the proceeds to accumulate more BTC.

The deterioration highlights a broader challenge facing digital-asset treasury companies. Their strategies can become difficult to sustain when falling equity valuations eliminate the premium investors once assigned to publicly traded Bitcoin exposure.

Nakamoto Shifts Strategy After Heavy Losses

Nakamoto reported roughly $372 million in losses during the first half of 2026, according to the figures cited by Coin Bureau. The company also sold $20 million of Bitcoin at a loss to help fund operations.

The Bitcoin sale was previously disclosed by Nakamoto. In March, the company sold approximately 284 BTC for $20 million, with the proceeds designated to strengthen its operating reserve and support working capital. The average sale price was below Nakamoto’s weighted-average Bitcoin acquisition cost of $118,171.

The company also completed a 1-for-40 reverse stock split in May. Nakamoto said the move was intended to restore compliance with Nasdaq’s $1 minimum bid-price requirement, reducing its outstanding shares from approximately 696.1 million to about 17.4 million on a post-split basis.

Nakamoto has since moved toward a broader operating model, including acquiring cash-generating businesses and prioritizing share repurchases rather than relying exclusively on Bitcoin accumulation.

Bitcoin Holdings No Longer Guarantee Equity-Financed Growth

The shift reflects the changing economics of Bitcoin treasury companies. Nakamoto reported holding 4,467 BTC as of June 30, with an aggregate fair value markets of approximately $261.5 million. At the same time, the company reported $164.7 million in total debt and $19.1 million in cash.

The company also authorized a share repurchase program of up to $25 million during the second quarter. Nakamoto said it reduced debt by approximately $45 million during the period, funded mainly through $48 million of net proceeds from selling approximately 600 BTC and certain derivative positions.

Bailey acknowledged the central problem directly, saying: “We bought Bitcoin at the top, and then Bitcoin performed very poorly.”

The next question for investors financial is whether Nakamoto can generate sufficient operating cash flow from its businesses and capital-allocation strategy to reduce reliance on equity issuance while maintaining meaningful Bitcoin exposure.

Writer: Victoria Hale
Technology & Blockchain Writer

Victoria Hale writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles explore how new protocols and systems are shaping the evolving digital economy.

She prioritises clarity and accuracy when explaining technical developments to a general audience.