David Bailey’s Bitcoin Company’s Stock Drops 95%

The value of Nakamoto, previously known as Kindly MD, has experienced a significant drop in shares by a staggering 95% within a span of three months, plummeting from $35 to $1.3. This downward trend has persisted following the circulation of a contentious letter addressed to investors.

In the letter released by the CEO of Nakamoto, David Bailey, who is also the established figure behind Bitcoin Magazine, he cautioned shareholders about the impending volatility of NAKA. Bailey suggested to investors seeking a bargain to consider exiting the company during this uncertain period.

The CEO referenced a transition point, alluding to the submission of an S3 registration form to the U.S. Securities and Exchange Commission (SEC) on September 12. This move restricts the selling of shares acquired at a discounted rate until the form is authorized. This pivotal filing is deemed to have exacerbated the ongoing decline in the company’s value, with NAKA suffering a consistent dip since its peak in May.

Bailey expressed gratitude for the overwhelming support received, with close to 80 million shares traded on that day alone. Despite the challenges faced, he remains optimistic about engaging with new shareholders and engaging with existing investors for long-term commitments.

The amalgamation of medical service provider Kindly MD with Bitcoin holding entity Nakamoto birthed the formation of Nakamoto, raising $710 million to establish a bitcoin reserve. Initially, Nakamoto was valued at a significant premium compared to its cryptocurrency reserves. However, the company’s mNAV has dwindled to 0.82 from its peak.

Adhering to Nasdaq regulations, a company breaching the $1 share value mark for an extended period is issued a warning and granted 180 days to rectify the situation before facing delisting. Earlier reports from JPMorgan highlighted the removal of Strategy from the S&P 500 as a setback for crypto treasuries.

David Bailey acknowledged the challenges faced by the company and emphasized the necessity to confront and navigate through the adversity. Despite the obstacles, Bailey remains confident in the company’s ability to overcome the hurdles and emerge stronger from the current predicament.