Trump Crypto Ally David Bailey's Nakamoto Stock Plummets 99%
The entrepreneur is pivoting his Bitcoin-stockpiling venture toward M&A after a precipitous price collapse.
David Bailey, a prominent cryptocurrency entrepreneur and advisor to Donald Trump, is navigating a severe financial downturn following the collapse of his public company's valuation. The situation highlights the volatility inherent in Bitcoin-linked equity ventures and the precarious position of high-profile crypto figures tied to political power.
Bailey raised approximately $760 million for Nakamoto, a public company specifically designed to stockpile Bitcoin. However, since its entry into the public market in May 2025, the stock price of Nakamoto has plummeted by approximately 99% from its peak. This collapse has erased the vast majority of the company's market value in a short window following its public debut.
The Bitcoin Treasury Model
The strategy employed by Nakamoto mirrored a growing trend among public companies to utilize their balance sheets as Bitcoin treasuries. By raising significant capital to acquire the digital asset, Bailey aimed to create a vehicle that provided investors with exposure to Bitcoin's price action through a traditional equity structure. This model relies heavily on market sentiment and the ability to maintain a premium over the underlying asset's value, both of which vanished as the stock entered its freefall.
Market and Political Implications
The scale of the loss is significant given Bailey's role as a crypto ally to Donald Trump. As political figures increasingly integrate cryptocurrency into their platforms, the business histories and financial stability of their primary advisors come under intense scrutiny. The failure of a high-profile venture like Nakamoto can influence market sentiment and raise questions about the viability of Bitcoin-centric corporate structures when faced with extreme volatility.
The Pivot to M&A
In response to the collapse, Bailey is currently engaged in rebuilding efforts to stabilize the company. He is shifting Nakamoto's strategic focus away from simple Bitcoin stockpiling and toward mergers and acquisitions (M&A) and the pursuit of cash-generating businesses. This pivot suggests a move toward a more diversified corporate model intended to create sustainable revenue streams that are not solely dependent on the fluctuating price of Bitcoin.