Nakamoto Shares Plunge 99% From Peak as Bitcoin Treasury Strategy Comes

Nakamoto, the Bitcoin treasury company backed by crypto entrepreneur David Bailey, has seen its shares fall approximately 99% from their peak, putting significant pressure on a strategy built around raising equity capital to accumulate Bitcoin.

According to Bloomberg, as cited by WuBlockchain, Bailey raised approximately $760 million last year for Nakamoto. Following its merger and public listing in May 2025, however, the company’s stock has suffered a steep decline, weakening the economics of using equity issuance as a mechanism for expanding its Bitcoin holdings.

Nakamoto Turns to Acquisitions and Share Buybacks

The sharp decline has forced Nakamoto to reassess its approach. The company is now seeking cash-generating acquisitions while prioritizing share buybacks, according to the report.

Nakamoto reported a loss of approximately $372 million in the first half of 2026. The company also carried out a 1-for-40 reverse stock split in May, a corporate action that reduces the number of outstanding shares while proportionally increasing the share price.

For Bitcoin treasury companies, access to equity markets can be an important component of their accumulation strategies. When shares trade under pressure, however, raising new capital can become more difficult and potentially less attractive to existing shareholders.

Nakamoto’s experience illustrates the risks associated with relying on public-market valuations to support a Bitcoin accumulation model. A declining share price can constrain the ability to issue equity on favorable terms, while losses and capital requirements can further increase pressure on management to identify alternative sources of funding.

Bitcoin Treasury Model Faces a New Test

The development comes as publicly traded companies continue to explore Bitcoin as a balance-sheet asset, creating a market where equity valuation and cryptocurrency exposure are increasingly interconnected.

For Nakamoto, the shift toward cash-generating acquisitions and buybacks represents a material change from a strategy centered primarily financial on equity-funded Bitcoin accumulation. The company’s ability to generate sustainable cash flow and manage its capital structure will now become increasingly important.

The next key indicator will be whether Nakamoto can execute its acquisition strategy and restore shareholder value while maintaining its position within the increasingly competitive markets for corporate Bitcoin treasuries.

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.