Nakamoto CEO Responds to 96% Stock Price Drop
David Bailey, CEO of Bitcoin treasury firm Nakamoto (NAKA), addressed the company’s 96% stock price collapse. After nearly a week of silence, Bailey posted on X, “The only way out is through. We’ll get this over with as quickly as possible.” He urged long-term supporters to stay strong amid heavy selling and investor losses.
Nakamoto went public on May 12. Its stock peaked at $34.77 on May 22 but fell sharply to $1.16 by September 15. The price dropped 60% over the past weekend alone. This triggered an emergency audio session on X where investors shared concerns. Bailey called the recent weeks “brutal” but also “our most productive.”
Selling Pressure and Investor Concerns
The stock’s decline was driven by sustained selling pressure and news about the company’s private placement financing. Early investors like Jameson Lopp and Adam Back bought shares at about $1.12. This contrasts sharply with the $28.51 opening price at the public debut. Retail investors who bought at higher prices have expressed significant concern.
- Jameson Lopp: 1,340,000 shares
- Balaji Srinivasan: 273,038 shares
- David Bailey: 11,160,572 shares
- Clark Moody: 100,000 shares
- Adam Back: 8,928,572 shares
- Danny Yang: 450,000 shares
Bailey described the sell-off as “upgrading our shareholder base.” He encouraged believers in Nakamoto’s long-term vision to “brave the storm.” He also noted the high cost to borrow NAKA shares, around 2000%, calling it “the highest in the nation.” This indicates many investors are betting against the company. This contrasts with Bailey’s May statement about strong market excitement and FOMO.
Volatility Highlights Risks in Crypto Sector
Nakamoto’s rapid rise and fall highlights the volatility of new crypto ventures, especially those tied to Bitcoin treasury models. The large gap between private placement and public offering prices shows the risks for retail investors during hype cycles. Bailey’s efforts to regain trust will be crucial to Nakamoto’s future. The company’s fate will show if it can recover or become another example of crypto market crashes.
