Nakamoto Cuts Bitcoin Exposure to Manage Liquidity Strain
Nakamoto Holdings (NAKA), the bitcoin-focused firm founded by David Bailey, sold roughly 284 BTC for about $20 million in March, marking a rare reduction in its holdings as it pushes ahead with its bitcoin treasury strategy.
The company said the proceeds will be used to fund working capital and operations following its acquisitions of BTC Inc. and UTXO, which are central to its transition into a bitcoin-centric platform, according to its full-year filing.
Nakamoto went public in May through a merger with healthcare provider KindlyMD, raising $710 million to support its treasury-focused approach.
The March transaction accounted for approximately 5% of its bitcoin reserves, despite the firm’s broader goal of continuing to accumulate the asset. Based on disclosed figures, the average sale price was around $70,422 per bitcoin.
The sale points to mounting liquidity pressures. Nakamoto carries a $210 million USDT loan from Kraken with an 8% interest rate, secured against most of its bitcoin holdings. This structure limits financial flexibility and may force further asset sales to meet interest obligations.
The company’s financials highlight the strain. Nakamoto reported a pre-tax loss of $52.2 million for the year ended Dec. 31, widening sharply from a $3.6 million loss the previous year. The decline was driven largely by a $166.1 million drop in the value of its digital assets following a late-2025 downturn in bitcoin prices.
Shares of Nakamoto have plunged 99% from their May high, underscoring investor concerns as the company navigates its transition and ongoing balance sheet pressures.
