Stock Market

Story: Nakamoto CEO Pockets Millions While Holders Watch $238M Q1 Wipeout

By Julie Binoche

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Bitcoin Holdings Pledged as Collateral. Nakamoto likes to talk about its Bitcoin reserves. Bailey's been vocal about the company's crypto…

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Revenue Can't Cover the Bleeding. Nakamoto's got its hands in a bunch of different businesses. Media. Advisory services. Healthcare.

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Nakamoto Inc. just posted a $238 million loss for the first quarter. That's a staggering number for a company that supposedly holds over 5,000 Bitcoin, worth around $345 million…

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Shareholders aren't happy. The stock crashed from $0.36 to $0.22 per share during the quarter, a 39% nosedive that left investors nursing heavy losses. And it gets worse.

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Nakamoto likes to talk about its Bitcoin reserves. Bailey's been vocal about the company's crypto strategy, positioning Nakamoto as a Bitcoin-focused operation.

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That loan's a ticking clock. December's not far off, and the company's got to figure out how to repay $210 million while bleeding cash from operations.

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Nakamoto's got its hands in a bunch of different businesses. Media. Advisory services. Healthcare. Asset management. Combined, those divisions pulled in just $2.

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The real controversy centers on two acquisitions: BTC Inc. and UTXO Management. Both were previously controlled by Bailey and Evans, and Nakamoto bought them for a combined $181…

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Investors approved a reverse stock split to avoid getting kicked off Nasdaq. The ratio could be anywhere from one-for-20 to one-for-50, a desperate move to prop up the share…

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Related: BTC Holder Recovers 5 Worth $400K After Claude AI Finds Lost Seed Phrase

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Stock-based compensation hit $1.6 million in Q1, adding insult to injury for shareholders watching their investment crater.

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The Kraken loan looms large. With 4,405 Bitcoin tied up as collateral and a December deadline approaching, Nakamoto's got limited room to maneuver.

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Bailey's public statements paint a rosy picture of Nakamoto's Bitcoin strategy, but the numbers tell a different story.

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The BTC Inc. and UTXO Management deals raised eyebrows from day one. Bailey and Evans had significant ties to both entities before Nakamoto acquired them.

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Read also: US Banks Rush Digital Overhaul as Moodys Warns of Coming Finance Shakeup

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