Nakamoto Holdings, led by Bitcoin Magazine CEO David Bailey, has seen its stock price plummet over 98% since its peak in May due to a sell-off by investors related to its $563 million Private Investment in Public Equity (PIPE).
The company completed a merger earlier this year with KindlyMD, a medical operator based in Utah, becoming one of the few publicly traded companies with a Bitcoin-centric structure.
According to Bailey in a recent interview with Forbes, its financing model raised funds to purchase Bitcoin by selling shares to private investors at a significant discount, which faced backlash after a large number of PIPE shares were unlocked in September. Investors sold off shares en masse, causing the stock price to crash and evaporating billions in market value.
Bailey, known for his significant position in the Bitcoin community and his connections to former President Trump in promoting cryptocurrency policy, views this decline as part of a long-term strategy. He told Forbes, "Those who only want to trade short-term are actually our very expensive capital," calling for "long-term consistent partners."
Despite the heavy hit, Nakamoto still holds 5,765 Bitcoins on its balance sheet, valued at approximately $653 million. According to BitcoinTreasuries.NET, this makes Nakamoto the 19th largest publicly held company in Bitcoin.
Bailey stated that he plans to integrate his other businesses, including Bitcoin Magazine, the Bitcoin Conference, and the hedge fund 21 Capital, into Nakamoto to enhance the company's cash flow and solidify its position as a "Bitcoin-centric" corporate group.
The company's stock is currently trading on NASDAQ under the ticker NAKA, still severely undervalued compared to its Bitcoin assets. According to Yahoo! Finance, the current price is about $0.9480, far below the May peak of $25.
Nakamoto is not the only one under pressure. On Tuesday, Metaplanet announced a ¥75 billion ($500 million) stock buyback plan to support its stock price, after the company's market value fell below its Bitcoin-backed net asset value (mNAV).
The board-approved buyback plan allows the company to repurchase up to 150 million shares (13.13% of total shares) through the Tokyo Stock Exchange, until October 2026.
Currently, Metaplanet holds 30,823 Bitcoins, with a total value of approximately $3.5 billion. Its mNAV recently dipped to 0.88 before rebounding to 1.03, prompting the company to suspend new Bitcoin purchases.
Related: Early Ethereum whale activity? Data shows old ETH is moving.
Original article: “Nakamoto Holdings Stock Plummets, $563 Million PIPE Deals Trigger Massive Sell-off”
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