Bitcoin Rally Stalls, Nakamoto Faces Big Crash
Bitcoin’s price has stopped rising in recent months, staying close to $110,000 since December 2024. This comes even after more support from Wall Street and the U.S. government.
At the same time, trouble is hitting Nakamoto, a bitcoin treasury company founded by David Bailey. The company’s stock price has crashed 50% in one day and is now down 95% from its peak in May. Some fear this could trigger a bitcoin “death spiral.”
Nakamoto, which merged with healthcare firm Kindly MD in August, bought nearly 6,000 bitcoin worth about $700 million. The company planned to buy more using stock sales and debt. At first, its shares traded far above the value of its bitcoin holdings, but now they’re worth even less than the bitcoin it owns.
Analysts warn that smaller treasury companies like Nakamoto face bigger risks than larger firms like Strategy (founded by Michael Saylor), which owns 638,000 bitcoin worth $73 billion. If companies can’t keep their value above the bitcoin they hold, they might be forced to sell, which could push bitcoin’s price down further.
Strategy has also been hit by falling prices—its stock is down 30% since July—but it still has scale and reputation on its side.
Bailey, who also advises Donald Trump on bitcoin, has urged patience. He said it’s “critical” to build loyal investors and warned shareholders expecting quick profits to leave. He also criticized the growing number of crypto treasury companies, saying many are poorly managed and confuse the market.
