- Nakamoto is one of the most hyped Bitcoin treasury companies spawned in 2025. Despite the media presence, its stock is down around 95% since its all-time high.
- The major 50% drop followed the unlocking of the PIPE investors’ holdings and a letter to shareholders urging short-term investors to exit.
- While many experts have been warning about the risks associated with Bitcoin treasury companies, Nakamoto’s price crash is the toughest nosedive in the sector so far.
David Bailey’s Nakamoto is one of the best-recognized Bitcoin treasuries. Shares traded at over $30 at the peak in May, but ever since, the NAKA price has been rolling down the hill. On Sep. 15, 2025, Bailey released a letter to shareholders warning about upcoming volatility and urged uncertain shareholders to exit. The same day, NAKA price plunged from $2.5 to $1.2.
The NAKA price plunge
David Bailey is Bitcoin Magazine chairman, BTC Inc. CEO, and a person who advised Donald Trump on Bitcoin during the latter’s presidential campaign of 2024.
In May 2025, Bailey raised $300 million and launched Nakamoto, a public company focused on purchasing bitcoins in bulk and selling shares. As other similar Bitcoin treasury companies (BTCTCs) promise, their stock (NAKA) is supposed to have a better yield than Bitcoin itself. In the time following the launch, Nakamoto purchased 5,765 bitcoins, which secured the company the 16th position in the list of the biggest Bitcoin treasuries.
Shortly after the launch, the NAKA price peaked at $34 and then began to slide slowly. Starting in June, it traded below $15. The price fell below $5 by September. In August, Nakamoto Holdings merged with a healthcare public company, KindlyMD. In the Securities and Exchange Commission filing, it is outlined that yield from Bitcoin holdings will benefit KindlyMD. It is possible only if the BTC price appreciation covers the costs. Yet, the company lost money due to buying most of its BTC at a high price of over $118,000.
Following the merger, PIPE Investors started to dump shares, bringing the NAKA price lower. The price had a short-term surge following the announcement that Nakamoto subsidiary KindlyMD will invest $30 million in another declining Bitcoin treasury, Metaplanet. The letter to the shareholders released on Sep. 15 resulted in an over 50% NAKA price crash or 95% decline from the all-time high.
The letter contains the following segment:
“The foundation we build over the next few weeks and months will propel our strategy forward, for those that want to be part of it. For those shareholders who have come looking for a trade, I encourage you to exit. This transition may represent a point of uncertainty for investors, and we look forward to emerging on the other side with alignment and conviction amongst our backers.”
Immediate reaction
The FUD over Nakamoto has struck the crypto X. Understandably, many BTCTC sceptics have voiced their criticisms of Strategy-like companies whose only purpose is selling stocks to buy more Bitcoin. One of them, a crypto sleuth using the Pledditor handle, even posted the list of Nakamoto PIPE investors. He has made a short list of big names in the Bitcoin community who bought lots of NAKA, ranking them by the number of shares purchased. It includes Metaplanet CEO Simon Gerovich, Casa CTO Jameson Lopp, former Coinbase CTO Balaji Srinivasan, Blockstream CEO Adam Back, former Bitwise manager turned ProCap BTC CIO Jeff Park, and others. Some blamed them for supporting Nakamoto. According to Pledditor, some of the Bitcoin podcasters who claimed they were PIPE investors are not on the list. It raises questions about the methods used to promote NAKA.
However, it’s safe to say that criticism was paired with the words of support. Some saw the situation as a buying opportunity and claimed they bought more NAKA at a discount. They attributed the sharp downfall to an unlock for PIPE investors. As of Sep. 16, the price rose to $1.5.
Bailey has been active on X in the days before and following the crash. In one of the posts before the crash, he expressed disdain for digital asset treasuries built around altcoins (lately, some of them have been doing way better than Nakamoto). He suggested that the Bitcoin treasury company brand is exhausted and offered the term “Bitcoin banks.” However, some, including one of the biggest Nakamoto PIPE investors, Jameson Lopp, prefer the term “suitcoins,” reminiscent of a derogatory term “shitcoins,” widely used to describe worthless altcoins.
One day after the crash, Bailey expressed a bit of optimism, saying, “Price might be low, but at least we are liquid.”
What’s next for Nakamoto?
Nasdaq has strict rules for penny stocks. If the stock is traded below $1 for 30 consecutive days, Nasdaq gives the company 180 days to fix the problem. Otherwise, the stock gets delisted. Nakamoto only approached the $1 threshold for a very short time. However, now the company will have to put more effort into keeping its stock price away from the said level.
The company’s shares are traded. The retail investor base, at least partially, stayed loyal. It doesn’t seem Nakamoto is going to leave the scene soon. However, if you consider investing in it, you should factor in this recent nosedive and overall risks associated with Bitcoin treasuries whose hype time is gradually getting changed with a slow time. Even the leading company in the sector, Strategy, is facing troubles: its stock price has continued to decline for two months, and the S&P 500 commission snubbed Strategy’s candidacy for addition to the index.
