Nakamoto Holdings' $563 Million Sale: 98% Decrease!

Exciting developments continue to occur in the world of cryptocurrency. Nakamoto Holdings, led by David Bailey, the owner of Bitcoin Magazine, experienced a significant loss in value following a $563 million private investment in public equity (PIPE) deal, with shares dropping by 98%.

Nakamoto Holdings (NAKA) has lost more than 98% of its value since reaching its peak in May of this year, with its price plummeting from $25 to $0.94. According to information reported by Cointelegraph, the company’s PIPE financing model led to excessive selling pressure due to the issuance of shares sold at low prices, shaking investor confidence following a planned merger.

Nakamoto Holdings transitioned to a publicly traded Bitcoin (BTC) treasury structure after a merger with the US-based health operator KindlyMD in the first half of the year. However, selling shares to private investors at low prices, and the increase in those sales following the lifting of restrictions in September, has become a significant problem threatening the value of the stock. The short-term selling pressure on the company has led to a substantial drop in share prices.

Bailey characterized short-term investors as “expensive capital,” expressing that they aim to grow Nakamoto with long-term partners. The company’s financing strategy is built around strengthening cash flow by bringing together Bitcoin Magazine, the Bitcoin Conference, and the 210k Capital fund.

Despite all these negative developments, it is noted that Nakamoto Holdings holds 5,765 Bitcoin, valued at approximately $653 million. This positions Nakamoto as the 19th largest publicly traded Bitcoin holder in the world. On the other hand, Japan-based Metaplanet has also experienced a similar decline and initiated a 75 billion yen (approximately $500 million) stock buyback program to halt the loss in its shares.

Sequentially, while Metaplanet's Bitcoin-backed net asset value (mNAV) recently dipped to 0.88, it managed to recover to 1.03. The company currently holds 30,823 Bitcoin (approximately $3.5 billion) and has temporarily halted new purchases. During this period, critical points for Bitcoin investors to watch are increasing.