Nakamoto’s Crypto Troubles Intensify Amid Market Volatility
Nakamoto, led by David Bailey, a prominent figure in Bitcoin circles, aimed high as a Bitcoin treasury company. Launched in 2025,it promised better yields than bitcoin alone. Its shares hit $34 in May but have as faced steep declines.
By september, the stock was trading below $5. A major drop occurred on September 15 after Bailey warned shareholders about incoming volatility and suggested uncertain investors sell off. This caused the price to plunge by over 50%, reaching a significant loss of 95% since its peak.
Nakamoto’s struggle began with its $300 million fundraising in May and included a merger with healthcare firm KindlyMD. Bailey hoped Bitcoin thankfulness would fund this partnership,but he faced losses due to high Bitcoin prices.
Pipe investors then sold off shares, leading to further price drops. Bailey’s September letter sparked reactions online. Critics slammed the strategy, but some saw it as a buying chance.
Twitter threads highlighted discrepancies between reported and actual PIPE investor shares. Bailey, though, remained optimistic, stating, “Price might be low, but at least we are liquid.”
Nakamoto faces Nasdaq rules for penny stocks; if below $1 for 30 days, the stock risks delisting. Despite current challenges, some retail investors remain loyal. But the hype has given way to uncertainties for Bitcoin treasuries.
Even Strategy, a leading player, struggled with its stock, showing a two-month decline and missing the S&P 500 cut. Hence, potential Nakamoto investors should weigh the risks carefully.
