By Shares of David Bailey-led Nakamoto have lost more than 99% of their value from last year’s peak, illustrating the dramatic collapse of the premium investors once placed on publicly traded Bitcoin treasury companies. Nakamoto, formerly healthcare company KindlyMD, became a Bitcoin-focused company after completing its merger with Nakamoto Holdings in August 2025. Its shares surged after the deal was announced in May 2025 as investors embraced a Strategy-style model of raising capital to accumulate Bitcoin.
That enthusiasm has almost completely reversed. Adjusted for Nakamoto’s 1-for-40 reverse stock split in May 2026, its 52-week trading range has extended as high as approximately $659, compared with recent prices in the mid-single digits. The collapse has erased more than 99% of the stock’s peak value even as Nakamoto has transformed itself into a broader Bitcoin operating company.
Bitcoin Treasury Strategy Comes Under Pressure
Nakamoto’s difficulties have been amplified by leverage and falling Bitcoin prices. The company held 4,467 BTC as of June 30, worth approximately $261.5 million at quarter-end. But 3,805 BTC — about 85% of the treasury — were pledged as collateral against debt. Nakamoto reported $164.7 million of debt and just $19.1 million of cash at the end of the second quarter, producing a net-leverage-to-digital-assets ratio of 56%. The company has already been forced to shrink its Bitcoin holdings.
During Q2, Nakamoto sold approximately 600 BTC and certain derivative positions, generating $48 million of net proceeds that were primarily used to repay 45 million USDT of Bitcoin-backed debt. It simultaneously refinanced approximately $105 million of principal, extending maturity into June 2027. Those actions reduced immediate financial pressure but weakened the original accumulation narrative that helped propel Nakamoto shares higher. The company had held 5,765 BTC before a series of sales reduced its treasury to 4,467 BTC. Its market capitalization has also fallen below the gross value of its Bitcoin holdings, reflecting the market’s discount for debt, pledged collateral and operating risks.
Bailey Pivots Toward Bitcoin Operating Businesses
Bailey is responding by emphasizing that Nakamoto is no longer simply a leveraged Bitcoin treasury vehicle. In February, the company completed acquisitions of BTC Inc., parent of Bitcoin Magazine and the Bitcoin Conference, and UTXO Management. Those businesses added media, events, asset management and advisory operations alongside the Bitcoin treasury. Nakamoto subsequently closed its remaining legacy healthcare clinics in June, completing the operational shift away from KindlyMD’s original business. The strategy showed some progress during Q2. Nakamoto reported its first positive adjusted operating income since becoming an integrated Bitcoin company, although GAAP results continued to reflect substantial non-cash charges associated with Bitcoin and investments.
The stock’s collapse has nevertheless created a difficult capital-markets environment. Bitcoin treasury companies depend partly on their ability to issue shares or other securities at attractive valuations and use the proceeds to increase Bitcoin exposure per share. When their shares trade at large premiums to underlying Bitcoin value, that model can become self-reinforcing. When the premium disappears, raising capital becomes substantially more dilutive. Nakamoto has attempted to signal confidence by authorizing up to $25 million of share repurchases. Bailey has also personally bought shares. In May he spent approximately $993,000 purchasing 191,448 post-split shares at an average $5.19, increasing his beneficial ownership to roughly 18.25%.
The company now faces a different test from the one investors priced into its stock in 2025. Rather than simply accumulating Bitcoin through an expanding valuation premium, Nakamoto must demonstrate that its media, asset-management and advisory businesses can generate enough standalone value to support the balance sheet. Its more-than-99% decline shows how severely public markets have repriced that proposition.