Nakamoto Treasury Plummets 98%, Still Pays Bailey Lavishly

Bitcoin treasury company Nakamoto (NAKA) has experienced a significant decline, with investors now measuring its multiple-to-Net Asset Value (mNAV) in fractions. The company recently delayed its quarterly earnings report and SEC filings, citing “complexity of accounting” after losing over $23 million on digital assets. Nakamoto has also replaced a CEO at a company it is acquiring and initially planned to pay a 10x multiple for David Bailey’s private business, BTC Inc.

The company’s common stock has plummeted from a 23x mNAV to under 0.5x, representing a 98% decrease from its high on May 22, 2025. Despite holding 5,765 BTC, valued at approximately $540 million, Nakamoto’s market capitalization is less than $300 million.

Shares have lost one-fifth of their value in the last month and 95% of their value over the past six months. David Bailey, founder of BTC Inc., is positioned to benefit from an all-stock windfall from Nakamoto.

BTC Inc., set to be acquired by Nakamoto, was initially valued at $306 million, based on a 10x multiple of its annualized EBITDA of $30.6 million. The deal’s value is tied to KindlyMD’s $1.12 per share PIPE price, resulting in a potential $273 million payout for Bailey’s firm. Even with this reduction, the value exceeds Nakamoto’s current market capitalization of $253.

Brandon Greene recently replaced Bailey as CEO of BTC Inc., although Bailey will remain chairman, citing his focus on Nakamoto. BTC Inc. completed an audit in September, a prerequisite for KindlyMD/Nakamoto’s acquisition option.

The original deal was intended to pay an industry standard multiple of 10x of earnings before interest, taxes, depreciations, and amortization (EBITDA).

Source: protos.com

Disclaimer: What is written here is not investment advice. Cryptocurrency investments are high-risk investments. Every investment decision is under the individual’s own responsibility.