Nakamoto Holdings, the Bitcoin finance company led by Bitcoin Magazine CEO David Bailey, has seen its shares plunge over 98% since their peak in May following a wave of investor selling related to its $563 million private investment-in-public equity (PIPE) deals.
The company, which merged with Utah-based healthcare operator KindlyMD earlier this 12 months, became one in all the few publicly traded corporations structured as a Bitcoin (BTC) holding company.
However, its funding model, which involved selling deeply discounted shares to retail investors to fund Bitcoin purchases, backfired when a considerable amount of PIPE shares were listed on the market in September. The resulting flood of sell orders caused the stock price to collapse and worn out billions in market value, Bailey said in a recent interview with Forbes.
Bailey, known for his distinguished role within the Bitcoin community and his ties to US President Donald Trump's pro-crypto push, calls the downturn a part of a long-term plan. “People who are only trying to trade are literally very expensive assets for us,” he told Forbes, calling for “long-term partners.”
Nakamoto holds 5,765 BTC value $653 million
Despite the bankruptcy, Nakamoto still holds 5,765 Bitcoin value around $653 million on his balance sheet. This makes Nakamoto the nineteenth largest public Bitcoin holder, in accordance with BitcoinTreasuries.NET.
Top 20 public Bitcoin holders. Source: BitcoinTreasuries.NET
Bailey said he plans to integrate several of his other corporations, including Bitcoin Magazine, the Bitcoin Conference and hedge fund 210k Capital, into Nakamoto to bolster the corporate's money flow and strengthen its position as a Bitcoin-first conglomerate.
The company's shares, which trade on the Nasdaq under the ticker symbol NAKA, remain at a steep discount in comparison with its Bitcoin holdings. According to data from Yahoo! It is currently trading at around $0.9480, below its May high of $25. Finance.
Metaplanet launches $500 million buyback to spice up stock value
Nakamoto just isn’t the one Bitcoin holder under pressure. On Tuesday, Tokyo-listed Bitcoin treasury Metaplanet announced a 75 billion yen ($500 million) share buyback program to support its share price after it fell below the corporate's Bitcoin-backed net asset value (mNAV).
The buyback approved by the Board will allow the corporate to repurchase as much as 150 million shares (13.13%) through the Tokyo Stock Exchange by October 2026.
Metaplanet's mNAV recently fell to 0.88 before rising back to 1.03, prompting the corporate to suspend recent Bitcoin purchases. It currently holds 30,823 BTC, value around $3.5 billion.
