Trump's Crypto Ally Fights to Save His Company After a 99% Crash

Nakamoto Inc. (NASDAQ:NAKA), the Bitcoin treasury company built by Trump ally David Bailey, has crashed 99% from its peak and is now hunting for cash-generating acquisitions to survive.

Nakamoto’s 99% Crash Breaks Its Bitcoin Buying Model

Bloomberg reported Wednesday that Bailey raised roughly $760 million for Nakamoto after helping win Trump over to Bitcoin (CRYPTO: BTC).

The stock peaked shortly after the May 2025 merger announcement and has since collapsed 99%, wiping out the premium investors once paid to own Bitcoin through a publicly traded vehicle.

The core problem is that Nakamoto’s stock now trades well below the value of its actual Bitcoin holdings, breaking the financing engine that powered Strategy (NASDAQ:MSTR) and similar companies. 

When a Bitcoin treasury stock trades at a premium to its holdings, it can issue new shares to buy more Bitcoin profitably. However, at a discount, that math no longer works.

Nakamoto carried out a 1-for-40 reverse stock split in May to meet Nasdaq’s minimum bid-price requirements. For the first half of 2026, the company reported losses of roughly $372 million.

Bailey Pivots to Cash-Generating Acquisitions

Bailey spoke at the Bitcoin Asia conference that buying Bitcoin at the top was the core mistake, and the company is now focused on fixing what it can control.