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 Plunge 99% As 2026 Losses Test Bitcoin Strategy
Nakamoto shares have fallen about 99% from their peak, highlighting strain facing Bitcoin treasury companies after the market premium for public crypto vehicles weakened. The setback comes as Nakamoto seeks acquisitions that can generate cash while reducing reliance on equity financing.
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