Cryptocurrency company Nakamoto Inc. (NASDAQ: NAKA), associated with former Donald Trump digital assets advisor David Bailey, has come under the spotlight after recording significant losses from the sale of part of its Bitcoin reserves. The deal, carried out in March 2026, highlighted not only the company’s financial difficulties but also broader challenges in the crypto market amid a prolonged correction.
Sale at a Significant Discount
In March, Nakamoto sold 284 BTC, receiving around $20 million. The average sale price was $70,422 per coin—significantly lower than the average purchase price, which reached $118,171. As a result, the company recorded a loss of approximately 40% of its investment.
According to reports, the proceeds were directed toward maintaining operations and developing key business areas. This move indicates possible liquidity issues that forced the company to partially liquidate its strategic assets.
From an Ambitious Start to a Sharp Decline
Nakamoto Inc. emerged in May 2025 as a result of a merger between pharmaceutical company KindlyMD and David Bailey’s crypto business. At launch, the project attracted an impressive $710 million in investments, including $510 million through a private equity placement.
Major industry players among the investors included VanEck, Jihan Wu (co-founder of Bitmain), and Adam Back (founder of Blockstream). This gave the project strong credibility and generated significant market interest.
However, within a year the situation changed dramatically. In May 2025, the company’s shares peaked at $34.77, but by the end of March 2026, their value had collapsed to $0.21. This represents a drop of more than 99% from the peak—one of the sharpest declines among public crypto companies in recent times.
Financial Losses and Market Pressure
According to the report, Nakamoto’s net loss for 2025 reached $52.2 million—more than 14 times higher than the previous year. The main factor was the decline in crypto asset values: the company alone recorded a $166.2 million loss due to the drop in Bitcoin prices.
By the end of 2025, the average purchase price of BTC stood at $118,171, while the market price had fallen to $87,519. With the further decline below $66,500, potential unrealized losses could have become even more significant.
Strategy Review and Shift in Focus
Amid deteriorating financial performance, the company announced a strategic pivot. Nakamoto decided to fully exit the traditional medical business, which generated minimal revenue ($1.8 million in 2025), and focus entirely on the crypto industry.
An additional step was the acquisition of BTC Inc., the publisher of Bitcoin Magazine, as well as investment firm UTXO Management. These assets are closely tied to media and crypto-sector investments—areas the company is now prioritizing.
Despite selling part of its reserves, the company continues to view Bitcoin as a key strategic asset. Its balance sheet still holds more than 5,000 BTC, valued at approximately $330 million.
Broader Market Context
It is important to note that Nakamoto is not the only company selling Bitcoin amid the market downturn. Large mining companies have also begun actively liquidating reserves, locking in losses and raising liquidity. In total, such sales over recent months amount to billions of dollars.
This indicates that even the largest market participants are being forced to adapt to new conditions, revising their strategies and approaches to asset management.
Conclusions and Takeaways
The situation around Nakamoto Inc. clearly demonstrates the risks associated with aggressive bets on cryptocurrencies, especially in a highly volatile market environment. Even companies with strong investor backing and high-profile leadership are not immune to substantial losses.
Key takeaways:
– Dependence on cryptocurrency prices can critically impact business financial stability.
– High expectations at a project’s launch do not guarantee long-term success.
– Strategic flexibility and timely adaptation are becoming key survival factors.
In the coming months, it will become clear whether Nakamoto can execute its new course and restore investor confidence. However, one thing is already evident: the era of easy money in the crypto market is over, and participants will need to act far more cautiously and pragmatically.
