Nakamoto Holdings’ shares sink as $563M PIPE deals trigger massive sell-off
CEO David Bailey told Forbes he plans to fold Bitcoin Magazine, the Bitcoin conference and hedge fund 210k Capital into Nakamoto Holdings to boost cash flow.
Nakamoto Holdings, the Bitcoin treasury firm led by Bitcoin Magazine CEO David Bailey, has seen its stock collapse by over 98% since its May high after a wave of investor selling linked to its $563 million private investment in public equity (PIPE) deals.
The company, which merged with Utah-based healthcare operator KindlyMD earlier this year, became one of the few publicly traded firms structured as a Bitcoin (BTC) holding company.
However, its financing model, which involved selling heavily discounted shares to private investors to fund Bitcoin purchases, backfired when a large batch of PIPE shares became eligible for sale in September. The resulting flood of sell orders cratered the stock price, erasing billions in market value, Bailey said in a recent interview with Forbes.