Nakamoto, the Bitcoin treasury company backed by crypto entrepreneur David Bailey, has seen its shares fall approximately 99% from their peak, putting heavy pressure on a strategy built around raising equity capital to accumulate Bitcoin.

According to Bloomberg, as cited by WuBlockchain, Bailey raised approximately $760 million last year for Nakamoto. After its merger and public listing in May 2025, the company’s stock declined sharply, weakening the economics of using equity issuance to expand its Bitcoin holdings.

Nakamoto Turns to Acquisitions and Share Buybacks

The steep decline has forced Nakamoto to rethink its approach. The company is now seeking cash-generating acquisitions while prioritizing share buybacks, according to the report.

Nakamoto reported a loss of approximately $372 million in the first half of 2026. The company also carried out a 1-for-40 reverse stock split in May, a corporate action that reduces the number of outstanding shares while proportionally increasing the share price.

For Bitcoin treasury companies, access to equity markets can be an important part of their accumulation strategies. When shares come under pressure, however, raising new capital can become more difficult and may appear less attractive to existing shareholders. That makes public-market performance more than a headline figure: it can affect how readily a company can fund Bitcoin purchases, whether it can do so on favorable terms, and how much flexibility management has if operating losses persist.

Nakamoto’s experience highlights the risks tied to relying on public-market valuations to support a Bitcoin accumulation model. A falling share price can limit the ability to issue equity on favorable terms, while losses and capital requirements can add pressure on management to seek alternative sources of funding.

Bitcoin Treasury Model Faces a New Test

The development comes as publicly traded companies continue to explore Bitcoin as a balance-sheet asset, creating a market in which equity valuations and cryptocurrency exposure are increasingly connected. In that environment, companies that use stock issuance to build Bitcoin positions can see their financing capacity change quickly if investor sentiment shifts.

For Nakamoto, the move toward cash-generating acquisitions and buybacks marks a material shift away from a strategy centered primarily on equity-funded Bitcoin accumulation. The company’s ability to generate sustainable cash flow and manage its capital structure will now become increasingly important.

The next key question is whether Nakamoto can execute its acquisition strategy and restore shareholder value while maintaining its position in the increasingly competitive market for corporate Bitcoin treasuries.

Writer: Victoria Hale

Victoria Hale is a Technology \u0026 Blockchain Writer. She writes about blockchain technology, digital infrastructure, and the intersection of emerging technologies with finance. Her articles focus on how new protocols and systems are shaping the evolving digital economy. She prioritises clarity and accuracy when explaining technical developments to a general audience.