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.

The common stock has plummeted from a 23x mNAV to under 0.5x with shares 98% below their high.

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.

Read more: Could a hostile takeover be the end of the line for Nakamoto?

The all-stock deal will divide that $306 million figure by KindlyMD’s $1.12 per share PIPE price. In other words, $273 million.

Even that reduction is still higher than NAKA’s $253 market cap as of publication time.

Bailey is the founder of BTC Inc. This week, Brandon Greene stepped in to replace Bailey as BTC Inc. CEO. Bailey says he will remain as chairman and cited his focus on Nakamoto as a reason for the move.

BTC Inc. completed an audit in September, a required step prior to KindlyMD/Nakamoto exercising its option to acquire BTC Inc.