Nakamoto shares plunge 99% from peak as company pivots to acquisitions

Nakamoto Inc., the Bitcoin treasury company that emerged from a merger with healthcare firm KindlyMD barely a year ago, has watched its stock lose roughly 99% of its value from a May 2025 peak of $34.77 per share. That translates to approximately $23.6 billion in erased market capitalization.

Now, under the leadership of David Bailey, a prominent crypto figure and Trump ally, the company is scrambling to reinvent itself through acquisitions and diversification.

From healthcare company to Bitcoin vault

Nakamoto Inc. didn’t start life as a crypto play. The company began as KindlyMD before merging with Nakamoto Holdings in August 2025 to create a publicly traded Bitcoin-focused vehicle. The company raised approximately $760 million through PIPE financings, which it used to acquire around 5,398 BTC at an average cost of roughly $118,000 per coin.

Shares peaked at $34.77 in May 2025. By September 2026, NAKA stock was trading below the fair value of its underlying Bitcoin holdings.

The Nasdaq compliance scramble

Nakamoto executed a 1-for-40 reverse stock split in May 2026 to prop up its bid price. More consequentially, Nakamoto reported selling approximately 600 BTC to repay loans and regain compliance with Nasdaq’s listing standards.

Acquisitions as a lifeline

In February 2026, Nakamoto completed all-stock acquisitions of BTC Inc. and UTXO Management, deals valued between $80 million and $107 million. The acquired businesses had generated $80.5 million in revenue and $34.2 million in EBITDA over the prior twelve months. BTC Inc. brings media operations to the table, while UTXO Management adds asset management capabilities.

What went wrong with the Bitcoin treasury model

Nakamoto’s descent mirrors a broader sell-off across publicly traded Bitcoin treasury firms. Nakamoto trading below the fair value of its Bitcoin holdings means the market is essentially saying the company is worth less as a going concern than its assets would fetch in a liquidation.

For Nakamoto specifically, the $118,000 average cost basis on its BTC holdings matters enormously. Having already sold 600 BTC under duress, the remaining treasury is smaller than what was originally assembled.

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