Nakamoto Stock Plummets 99% Since May 2025: Controversial Acquisition of Bailey’s BTC Inc and UTXO Management Raises Eyebrows

Nakamoto Stock Plummets 99% Amid Controversial Acquisition of Bailey’s BTC Inc and UTXO Management

By Pedro Solimano, Markets Correspondent

In a shocking turn of events, Nakamoto Inc., the Bitcoin treasury company founded by David Bailey, has seen its stock crash a staggering 99% since May 2025. This dramatic decline comes as the company announced plans to acquire Bailey’s own BTC Inc and UTXO Management, raising eyebrows among market analysts and investors alike.

The acquisition, revealed on Monday, involves Nakamoto purchasing BTC Inc—owner of Bitcoin Magazine and organizer of the Bitcoin Conference—and UTXO Management, a hedge fund focused on Bitcoin investments. The deal is set to be executed using shares valued at $1.12 each, a price established before Nakamoto’s stock plummeted.

However, the reality is starkly different. As of Wednesday, Nakamoto’s shares closed at just $0.29, meaning the 363.6 million new shares issued for the acquisition are worth only $107 million, significantly less than the $407 million valuation on paper. This dilution of existing shareholders’ ownership has raised serious concerns, effectively doubling the outstanding share count.

Market watchers are questioning the motives behind Bailey’s decision to use his own struggling stock to acquire companies he founded. This isn’t the first time Bailey has faced scrutiny; last year, Nakamoto’s stock plummeted 96% after PIPE shares unlocked, leading him to advise shareholders looking for quick trades to exit their positions.

In a recent appearance on an X space hosted by Bitcoin Magazine, Bailey claimed that BTC Inc and UTXO Management had generated “over $100 million in revenue” in 2025. However, just a day later, Nakamoto filed an 8-K with the SEC correcting this figure to a mere $78 million, further fueling skepticism about the health of the companies involved in the acquisition.

Renowned short seller Jim Chanos, who has been critical of the Bitcoin treasury trade, did not hold back in his assessment of Bailey’s latest move, labeling it a “Theater of the Absurd.”

As the dust settles on this controversial acquisition, the future of Nakamoto Inc. remains uncertain. With shares continuing to decline—trading at $0.24 on Friday—investors are left to wonder whether Bailey’s ambitious plans will lead to recovery or further disaster.

Nakamoto and David Bailey did not respond to requests for comment from DL News.

For more updates on this developing story, stay tuned. If you have tips or insights, feel free to reach out at psolimano@dlnews.com.