Main Highlights
- Nakamoto Holdings’ share price has plummeted by over 98% from its May peak, largely due to its $563 million in private investment in public equity (PIPE) deals.
- These PIPE deals, which involved selling heavily discounted shares to fund Bitcoin purchases, led to significant shareholder dilution and investor sell-offs.
- CEO David Bailey plans to consolidate several company ventures, including Bitcoin Magazine and the Bitcoin conference, to bolster cash flow and establish a Bitcoin-first conglomerate.
- Despite the stock’s performance, Nakamoto Holdings remains a significant Bitcoin holder, with 5,765 BTC valued at approximately $653 million.
- In contrast, Strategy’s Q3 net income reached $2.8 billion, a substantial improvement from the previous year, with significant Bitcoin holdings and positive full-year guidance.
Nakamoto Holdings Faces Share Price Collapse
Nakamoto Holdings’ share price has experienced a dramatic decline, falling more than 98% from its all-time high in May. This sharp downturn was triggered by the company’s extensive private investment in public equity (PIPE) deals, totaling $563 million, which led to substantial selling pressure from investors.
The firm’s financing strategy involved selling shares at a significant discount to private investors, primarily to fund Bitcoin acquisitions. This approach resulted in considerable dilution for existing shareholders, and the market reacted negatively, especially after a large batch of PIPE shares became available for sale in September.
CEO’s Strategy Amidst Market Volatility
David Bailey, the CEO of Nakamoto Holdings, acknowledged the heavy sell orders that flooded the market, causing the stock price to plummet and wiping out billions in market value. In a letter to shareholders, Bailey advised those seeking short-term gains to consider exiting their positions.
Bailey framed the sharp stock drop as part of a larger, long-term strategy. In a recent interview with Forbes, he stated that investors focused solely on trading represent expensive capital for the company and emphasized the importance of long-term alignment with partners.
Consolidation for Future Growth
Bailey outlined Nakamoto Holdings’ plan to consolidate various business units, including Bitcoin Magazine, the Bitcoin conference, and UTXO Management (which owns the hedge fund 210k Capital). The primary objective of this consolidation is to enhance cash flow and position the firm as a leading Bitcoin-first conglomerate.
Nakamoto Holdings currently holds 5,765 Bitcoin on its balance sheet, valued at roughly $653 million, according to data from BitcoinTreasuries. This makes it the 19th largest public holder of Bitcoin.
💡 Despite the significant Bitcoin holdings, the company’s stock (NAKA) is trading at a substantial discount. At the time of reporting, NAKA was priced around $0.9480, a stark contrast to its May high of nearly $35.
In May, Nakamoto Holdings merged with KindlyMD, a healthcare services provider, to establish its BTC treasury. Bailey previously announced intentions to develop an ecosystem of Bitcoin-native companies spanning media, advisory, and financial services, all aimed at accelerating Bitcoin adoption and utility.
“Traditional finance and Bitcoin-native markets are converging. The securitization of Bitcoin will redraw the world’s economic map. We believe a future is coming where every balance sheet – public or private – holds Bitcoin.”
-David Bailey, CEO of Nakamoto Holdings.
Bailey further elaborated that the company aims to integrate Bitcoin into preferred shares, equity, debt, and hybrid structures, thereby placing it at the center of global capital markets. The firm’s mission includes listing such instruments on major exchanges worldwide. In early September, Bailey expressed his full commitment to Bitcoin.
Strategy Reports Strong Third Quarter Performance
Michael Saylor’s Bitcoin Treasury Strategy has reported a robust third quarter for 2025, with a net income of $2.8 billion. This marks a significant recovery from a $340 million loss in the same period the previous year. The firm had experienced losses up to the fourth quarter of 2024, primarily due to the volatility in Bitcoin’s price.
Strategy has also reaffirmed its full-year guidance, projecting $34 billion in operating income and $20 billion in Bitcoin gains. The company currently stands as the world’s largest corporate Bitcoin holder.
📊 As of the latest reports, Bitcoin is trading at approximately $109,816, showing a modest 1% increase for the day, though it has seen a slight decrease over the past week and month.
Saylor forecasts that Bitcoin’s price could reach $150,000 by the end of the year, citing diminishing volatility and a clearer market structure as key drivers. He also anticipates an average annual return of around 30% for Bitcoin over the next two decades, as the firm aims to significantly increase its Bitcoin holdings.
Final Thoughts
Nakamoto Holdings is navigating a period of significant valuation decline following its PIPE deal strategy, while CEO David Bailey focuses on long-term consolidation and integration of Bitcoin into traditional finance. In contrast, Strategy is demonstrating strong financial performance and confidence in Bitcoin’s future appreciation.