Nakamoto Stock Drops 99% from Peak Amid Bitcoin Premium Collapse

ME News reports that on September 2 (UTC+8), Nakamoto, the publicly traded Bitcoin treasury company founded by crypto entrepreneur David Bailey—who previously helped push Trump toward supporting Bitcoin—has seen its stock price plunge approximately 99% from its peak, as part of a broader decline in the digital asset treasury company sector. The premium investors were once willing to pay for companies holding Bitcoin via public listings has largely vanished. With the stock price now below the value of its Bitcoin holdings, the company can no longer easily raise funds through equity issuance to buy more Bitcoin, and has instead turned to acquiring cash-generating businesses to reduce reliance on further share dilution or debt. It is also prioritizing repurchasing its own undervalued shares over additional Bitcoin accumulation. In May of this year, Nakamoto executed a 1-for-40 reverse stock split to meet Nasdaq’s minimum price requirements; in February, it acquired two of Bailey’s companies via stock, increasing its fully diluted shares by approximately 70%. Short-seller Jim Chanos labeled this transaction a “farce.” The company posted a net loss of approximately $372 million in the first half of 2026. Bailey stated that he continues to steadily increase his ownership in the company and remains optimistic about its future prospects. (Source: Foresight News)