On Monday, thousands of investors joined a social audio space on X to discuss the worst day since David Bailey took Nakamoto (NAKA) public.
Its title, NAKA -60%: Is the Bitcoin Treasury Trend Over?, highlighted the stock’s 60% weekend price drop to an all-time low of $1.16.
From its all-time high of $34.77 on May 22, its crash to $1.16 this morning marked a 96% decline.
Bailey once cheered as his bitcoin (BTC) treasury company traded up to 23 times the value of its BTC holdings. Today, his company’s multiple-to-Net Asset Value or mNAV multiplier has declined 96% — mirroring its share price decline — to 0.82x.
Not content with simply becoming another BTC treasury company like Michael Saylor’s Strategy, Bailey promoted Nakamoto as a treasury company of BTC treasury companies.
Although early speculators were excited about the multiplying spin of Bailey’s meta-strategy, excitement has evaporated since May.
In an increasingly emotional series of tweets, he admitted last week that he took a mental health break due to his collapsing share price.
This morning, he cried out for support: “The only way out is through. We’ll get this over with as quickly as possible,” he wrote on X.
He also characterized the incessant selling as “upgrading our shareholder base,” asking long-term believers to “brave the storm.”
Read more: David Bailey’s Nakamoto exceeded 23X mNAV, 11X higher than MSTR
$1.12 per NAKA private placements from May
Nakamoto is still in the process of distributing shares to accredited and early stage investors in the complex business combination with KindlyMD, the healthcare company that provided it the ability to become a public company.
Despite shares opening after the news on May 12, at $28.51 per share, Nakamoto had actually priced private placement subscription agreements as low as $1.12 per share.
Few investors read that fine print when the paid up to $31.45 on the high of its opening day of trading.
Early investors in NAKA private placements include Jameson Lopp, Balaji Srinivasan, Adam Back, Mark Yusko, and many others.
Nakamoto also has pending equity deals with his other entities like UTXO Management that could also affect the Nakamoto share price before the end of the year.
On May 12, Bailey boasted, “We raised $710m in one of the largest financings in the history of our industry.” When NAKA hit its all-time high on May 22, he tweeted, “I can feel the stampede building, the fomo is very real.”
Unfortunately, this record-breaking financing and fear of missing out caused stunning losses for retail investors who bought into the springtime hype.
