Trump Crypto Ally David Bailey's Bitcoin Bet Lost 99% Of Its Stock Value. Now He's Rebuilding The Business.
Bailey said the company is seeking acquisitions that can boost income as it reported a $371.8 million loss and its shares sank about 99%.
- David Bailey, a crypto entrepreneur and ally of President Donald Trump, is shifting Nakamoto toward cash-generating acquisitions after its stock collapsed about 99% from a 2025 peak.
- Nakamoto was created through the merger of Bailey's Nakamoto Holdings with KindlyMD, a transaction initially backed by a $510 million private investment, though the company reported a $371.8 million net loss for the first six months of 2026.
- Pressure on its balance sheet forced Nakamoto to sell roughly 600 Bitcoin for about $48 million, using proceeds to repay $45 million in Bitcoin-backed debt.
- The company's struggles mirror a wider reversal for Bitcoin treasury stocks, with a Financial Times analysis finding these firms lost more than $80 billion in value since mid-2025 as investor enthusiasm faded.
- To regain compliance with Nasdaq's $1 minimum bid-price requirement, Nakamoto executed a 1-for-40 reverse split in May, reducing outstanding shares from about 696.1 million to approximately 17.4 million.
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Trump Crypto Ally David Bailey Rebuilds After 99% Stock Collapse
A year ago, David Bailey appeared to have the Midas touch. The crypto entrepreneur who helped win Donald Trump over to Bitcoin had raised about $760 million for a public company built to stockpile the cryptocurrency, while his hedge fund had returned 640% backing similar bets.
Nakamoto owns thousands of Bitcoin, but the stock has collapsed almost completely. Now David Bailey is trying to reorganize the company. Source: BTC-ECHO BTC-ECHO
Trump Crypto Ally David Bailey’s Nakamoto Shares Plunge More Than 99% From Peak
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 S…
Nakamoto shares fall 99% from peak as Bitcoin treasury model
📉 Nakamoto shares crashed 99% from their peak amid fading Bitcoin treasury premium. 🪙 The company posted a $372 million loss in the first half of 2026, driven by exposure to $BTC. 💸 Nakamoto now seeks acquisitions and share buybacks to reduce reliance on weak equity markets....
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