Bitcoin treasury Nakamoto down 98% — still pays David Bailey lavishly

David Bailey’s publicly-traded bitcoin (BTC) treasury company, Nakamoto (NAKA), has crashed so low that its investors are measuring its multiple-to-Net Asset Value (mNAV) in fractions.

The once-high flyer, which just delayed its quarterly earnings report and associated SEC filings, has complained about “complexity of accounting” after losing over $23 million on digital assets, replaced a CEO at a company it is acquiring, and admitted that it had originally planned to pay a lavish, 10x multiple for one of Bailey’s private businesses, BTC Inc.

Meanwhile, the common stock that everyone else owns has plummeted from a 23x mNAV to under 0.5x with shares 98% below their high on May 22, 2025.

Despite holding 5,765 BTC worth about $540 million in its so-called treasury, Nakamoto’s market capitalization is less than $300 million.

Its common stock has lost one-fifth of its value within the last month and 95% of its value over the past six months.

The winner amid the downfall is Bailey himself.

A $306 million valuation for BTC Inc.

Bailey founded BTC Inc. which is set to benefit from an all-stock windfall from Nakamoto.

Once cheaply priced at $1.12 per share when NAKA shares were soaring in the $30s, the $1.12 peg for Bailey’s all-stock deal with BTC Inc. is now richly above NAKA’s penny stock valuation.

Somehow, Bailey originally convinced KindlyMD — the public company that provided the NAKA shares for Nakamoto to trade on the Nasdaq — to pay “an industry standard multiple, not to be less than 10, of the earnings before interest, taxes, depreciations, and amortization (EBITDA) of BTC and its subsidiaries.”

That 10x multiple equals a lavish $306 million based on BTC Inc.’s most recently annualized $30.6 million EBITDA disclosure based on its nine-month earnings.