Nakamoto Holdings Crashes 54% as Market Loses Faith in Its Bitcoin Model

Data shows a significant drop in Nakamoto Holdings’ stock. The cause? A letter from its CEO, David Bailey, urging investors to exit if they doubt the company’s bitcoin strategy. We provide all the details in the following paragraphs.

A capitalization below the bitcoin reserves

Within 24 hours, the shares of the bitcoin treasury company bitcoin Nakamoto Holdings lost 54%. More precisely, they now trade around $1.26. This represents a loss of over 90% since its peak at the end of August.

One figure particularly catches investors’ attention: the mNAV ratio, which currently stands at 0.75. It reflects Nakamoto’s market value relative to its 5,765 bitcoin reserves, estimated at $663 million.

Currently, the market values the company below its assets. This misalignment is amplified by KindlyMD’s rapid transformation (formerly a medical company) into a crypto financial player. That’s not all! Generally, mNAV ratios close to 1 also signal growing skepticism.

According to Grayscale, the drop in Nakamoto shares reflects a broader trend. The fact is that investors no longer pay a premium to access digital assets via listed shares. Added to this is the rapid emergence of DATs (Digital Asset Treasuries) which seems to be reaching its limits.

Still young, this model will have to prove its viability against traditional market requirements. And precisely, the Nakamoto case might well become the real-world test.

An atypical and risky strategy

Nakamoto adopts a BTC accumulation method called mNAV². It consists of recycling the issuance premiums of its shares to strengthen its bitcoin reserves, without direct dilution. This stance opposes that of Strategy and Metaplanet. These rely on debt or massive issuances of securities.

More concretely, Nakamoto bets on future valuation. In case of a new drop, David Bailey mentions the possibility of selling bitcoin to stabilize the mNAV. A measure viewed as defensive, in a context where no operational revenue supports growth!

The current Nakamoto case thus revives the debate on using bitcoin as a treasury asset. As finance explores the potential of this cryptocurrency, the balance between speculation, governance, and transparency becomes more strategic than ever.