Trump’s Crypto Ally Fights to Save His Company After a 99% Crash

Nakamoto Inc.(NASDAQ:NAKA), the <a href="https://xpertsstudio.com/ripple-edges-bitcoin-in-south-korea/” title=”Ripple Edges Bitcoin In South Korea”>Bitcoin treasury company built by Trump ally David Bailey, has crashed 99% from its peak and is now hunting for cash-generating acquisitions to survive.

Nakamoto’s 99% Crash Breaks Its Bitcoin Buying Model

Bloomberg <a href="https://www.bloomberg.com/news/articles/2026-09-02/trump-crypto-ally-david-bailey-rebuilds-after-99-stock-collapse” rel=”nofollow noopener” target=”_blank”>reported Wednesday that Bailey raised roughly $760 million for Nakamoto after helping win Trump over to Bitcoin(CRYPTO: BTC).

The stock peaked shortly after the May 2025 merger announcement and has since collapsed 99%, wiping out the premium investors once paid to own Bitcoin through a publicly traded vehicle.

The core problem is that Nakamoto’s stock now trades well below the value of its actual Bitcoin holdings, breaking the financing engine that powered Strategy(NASDAQ:MSTR) and similar companies. 

When a Bitcoin treasury stock trades at a premium to its holdings, it can issue new shares to buy more Bitcoin profitably. However, at a discount, that math no longer works.

Nakamoto carried out a 1-for-40 reverse stock split in May to meet Nasdaq’s minimum bid-price requirements. For the first half of 2026, the company reported losses of roughly $372 million.

Bailey Pivots to Cash-Generating Acquisitions

Bailey spoke at the Bitcoin Asia conference that buying Bitcoin at the top was the core mistake, and the company is now focused on fixing what it can control. 

Instead of issuing more stock or taking on debt to accumulate Bitcoin, Nakamoto is searching for acquisitions that throw off real cash, using operating income to fund any future Bitcoin purchases rather than diluting shareholders further. 

The company is also buying back its own discounted stock rather than adding to its Bitcoin position.

The pivot comes after a damaging stretch of criticism. In February, Nakamoto used stock to acquire two Bailey-led companies, a media outlet and an investment firm, which pushed the fully diluted share count up roughly 70%. 

Meanwhile, short seller Jim Chanos called the transactions “Theater of the Absurd.” Bailey pushed back, saying merging those businesses in was always the plan and investors knew it was coming.

“We’re looking at businesses that can help us improve our income and our cash flow at the company,” Bailey said.

Why Bailey Is Still Bullish

Bailey told Bloomberg that he remains periodically in touch with senior White House officials and has been involved in outreach to the Bitcoin community ahead of November’s midterm elections. 

With Bitcoin climbing back toward $80,000 after falling below $60,000 earlier this year, Bailey sees a path forward.

“I think the next three years ahead are going to be really fantastic,” Bailey said.

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