📉 Nakamoto Holdings Shares Plunge 98% – A Warning Bell for the Bitcoin Treasury Model
The US stock market has just witnessed a rare plunge as the stock of Nakamoto Holdings, a Bitcoin treasury company run by David Bailey – CEO of Bitcoin Magazine – fell more than 98% in just a few months, from $25 to under $1 on the Nasdaq.
This decline marks one of the sharpest sell-offs among publicly held Bitcoin companies, raising questions about the sustainability of the “cryptocurrency treasury” model in the public market.
Cause: Selling pressure from PIPE transactions and September unlock
According to data from CoinTelegraph, the decline began after $563 million in PIPE (Private Investment in Public Equity) shares – that is, selling discounted shares to private investors – officially became freely available in September.
Soon after, early investors executed large-scale sell orders, sending the stock price into a downward spiral. Although Nakamoto Holdings still holds 5,765 BTC, worth about $653 million, the company's market capitalization has evaporated billions of dollars in just a few weeks.
Chain effect in the group of public Bitcoin businesses
This event shocked the financial community, as Nakamoto Holdings is one of the 20 largest Bitcoin holders in the world.
Bloomberg notes that some similar treasury companies are also seeing their shares fall more than 90% from their issue price, due to pressure from the PIPE financing model and Bitcoin price volatility.
“This is a prime example of how risk capital structures can amplify volatility in the digital asset space,” said investment expert Matt Hougan. “While the ecosystem remains resilient, treasury companies need more flexible financing strategies if they are to survive.”
Industry Picture: When the “Bitcoin Treasury” Model Is Tested
Nakamoto Holdings’ shock comes as listed companies holding Bitcoin saw a 76% drop in buying activity in the third quarter of 2025, reflecting a defensive sentiment in the face of geopolitical volatility and global trade tensions.
At the same time, Tokyo-listed Japanese firm Metaplanet announced a $500 million share buyback program to narrow the gap between its market price and net asset value, highlighting the stark differences in how companies manage digital asset risk.
Impact and Outlook
While Nakamoto Holdings’ collapse has investors worried, analysts say it could be a “necessary cleansing” for the Bitcoin treasury market.
Other companies, if they adjust their financial models, could bolster investor confidence with more sustainable strategies — such as flexible asset allocation, exchange rate risk management, or integrating blockchain products into their core operations.
Conclusion
Nakamoto Holdings’ decline is not just an isolated failure, but also a test of the entire Bitcoin storage business model on the stock market.
As Bitcoin prices and global macro factors fluctuate wildly, the question is: 💬 Can Bitcoin treasuries survive as a sustainable financial instrument, or are they just a short-term speculative cycle in modern financial history?