David Bailey, CEO of the Bitcoin treasury company Nakamoto (NAKA), has publicly addressed the firm’s catastrophic 96% stock price collapse from its peak in May. After a week of relative silence, Bailey stated on X, “The only way out is through. We’ll get this over with as quickly as possible,” as he attempts to rally long-term supporters amid extreme selling pressure and investor losses.
The company, which went public on May 12, saw its stock plummet from an all-time high of $34.77 on May 22 to a low of $1.16 by the morning of September 15. The dramatic decline included a 60% drop over the past weekend alone, prompting an emergency audio space on X where investors voiced their concerns. In a post on X, Bailey acknowledged the brutal period, stating, “Despite the last two weeks being brutal for NAKA stock they’ve also been our most productive.”
Selling pressure and investor disparity
Sustained selling pressure, which was partly caused by news regarding the company’s private placement financing, seems to be the main reason for the drop. Early investors, such as Jameson Lopp and Adam Back, bought shares for as little as $1.12. This price stands in stark contrast to the stock’s public debut, where it opened at $28.51, creating significant concern among retail investors who bought in at much higher valuations.
In response to the sell-off, Bailey characterized the situation as “upgrading our shareholder base” and urged those who believe in the company’s long-term vision to “brave the storm.” He also highlighted the intense negative market sentiment, noting the implied 2000% cost to borrow NAKA shares, which he claimed was the “highest in the nation,” indicating that a large portion of the market is betting against the company. This is a sharp reversal from the initial hype in May when he claimed, “I can feel the stampede building, the fomo is very real.”
Volatility risks
Nakamoto’s quick rise and fall is a warning about how unstable new enterprises in the crypto sector might be, especially those that are linked to a Bitcoin treasury model. The huge difference between private placement and public offering prices shows how risky it is for regular investors to get into the market when there is a lot of buzz. Bailey’s attempts to change the story will be very important in deciding if the company can win back investors’ trust or if it will just be another footnote in the history of crypto-related market crashes.
Also read: David Bailey’s Nakamoto Joins KindlyMD to Build Bitcoin Treasury
