The Rise and (Mostly) Fall of PIPE Financing in Bitcoin Treasury Firms
Once seen as a fast track to expanding bitcoin holdings, PIPE financing—Private Investments in Public Equity—is now facing scrutiny as the stock prices of several recent deals collapse.
PIPEs allow institutional investors to purchase shares directly from a publicly traded company at a fixed price, often below market value, enabling rapid capital raises without the delays of a traditional public offering. This model became popular among bitcoin treasury companies using SPACs or reverse mergers to accelerate BTC accumulation.
Case Studies: NAKA and ASST
KindlyMD (NAKA) completed a reverse merger in May 2025, turning bitcoin treasury operator Nakomoto into a wholly owned subsidiary. A PIPE raised $563 million, complemented by a $200 million convertible note, bringing total financing to $763 million. These funds were used to buy bitcoin, including 21 BTC for $2.3 million in July and 5,743 BTC for $679 million in August.
Despite this rapid accumulation, NAKA’s stock has plummeted more than 95%, from $30 to roughly $0.80. Its market net asset value (mNAV) has fallen below 1, meaning the market values the company at less than its bitcoin holdings.
Strive (ASST), founded by Vivek Ramaswamy, merged via a SPAC in September and raised $750 million in a PIPE at $1.35 per share—a 121% premium over pre-merger prices—to purchase 5,885 BTC. The company also announced a $450 million equity shelf, a $500 million share buyback, and a pending acquisition of Semler Scientific, which would increase total BTC holdings to 11,700.
Yet ASST’s stock has mirrored NAKA, dropping more than 90% from May highs, with an mNAV just below 1.
PIPE Financing: High Risk, High Speed
The struggles of NAKA and ASST raise caution for other PIPE-driven bitcoin treasury deals. Twenty One Capital (XXI) merged with Cantor Equity Partners (CEP), initially pushing shares from $10 to $60, only to see them retreat to around $20. Bitcoin Standard Treasury Company (BSTR), led by Adam Back, plans a SPAC with Cantor’s CEPO, aiming to raise $3.5 billion, including $1.5 billion via a PIPE, with shares peaking at $16 before falling to $10.50.
These cases show that while PIPEs can accelerate BTC accumulation, they carry substantial risk. Rapid treasury growth does not guarantee shareholder returns, and investors should approach PIPE-driven strategies with caution.
