TLDR:
- Nakamoto Inc. stock dropped 99.38%, falling from a peak of $34.77 to just $0.226 per share.
- The company raised over $740M to buy 5,398 BTC at an average price of around $118,000 per coin.
- Unrealized Bitcoin losses reached roughly $280M as prices pulled back from the company’s buy levels.
- A related-party deal issued 363.6M new shares, nearly doubling share count and deepening investor losses.
Nakamoto Inc. (NAKA) has lost nearly all its market value after a series of financial moves tied to its Bitcoin treasury strategy.
The stock, formerly trading under KindlyMD, peaked at $34.77 in May 2025. It now trades at just $0.226. The company raised over $740 million to accumulate Bitcoin at near-cycle highs. The result has been a 99.38% decline and roughly $23.6 billion in erased shareholder value.
How the Bitcoin Buying Strategy Led to Heavy Losses
Nakamoto Inc. rebranded in early 2026 under CEO David Bailey as a Bitcoin treasury company. The company modeled its approach after MicroStrategy’s well-known Bitcoin accumulation strategy. However, the execution raised concerns from the start.
The company raised capital through share dilutions and convertible notes to fund its Bitcoin purchases. It acquired 5,398 BTC at an average price of approximately $118,000 per coin. As Bitcoin pulled back from those levels, the position moved deeply into the red.
The company now sits on roughly $270 million to $280 million in unrealized losses. Those losses reflect the gap between the average purchase price and current Bitcoin market prices. The timing of the purchases proved costly for shareholders.
Bailey publicly dismissed criticism of the company’s direction. He described outside concerns as noise and maintained confidence in the strategy. Meanwhile, shareholders continued to absorb the financial weight of those decisions.
Related-Party Deals and Share Dilution Deepen the Damage
Beyond Bitcoin losses, a separate transaction drew further scrutiny. Nakamoto used its already-depressed stock to acquire BTC Inc. and UTXO Management. Both companies were also founded by Bailey himself.
The deal issued 363.6 million new shares to complete the acquisition. That issuance nearly doubled the total share count in a single transaction. Existing shareholders saw their stakes reduced significantly as a result.
Short seller Jim Chanos publicly described the transaction as “Theater of the Absurd.” His comment drew attention to the related-party nature of the deal. The transaction benefited entities closely connected to the CEO.
The combination of Bitcoin losses and aggressive dilution created a compounding effect on the stock. Each move reduced shareholder value further. Together, they contributed to one of the sharpest corporate stock declines in recent crypto history.
The Nakamoto Inc. case has drawn attention across the crypto investment community. It raises questions about governance, timing, and the risks of replicating Bitcoin treasury models. Not every company that adopts this approach will produce the same results as MicroStrategy.
