Buying high and selling low is not the outcome any Bitcoin treasury company plans for. But that is essentially what Nakamoto Holdings disclosed in its latest annual filing, a $20 million sale of Bitcoin completed well below what the company originally paid.
Nakamoto sold approximately 284 Bitcoin in March for around $20 million, implying an average exit price of roughly $70,422 per coin. The firm had accumulated its Bitcoin holdings at a weighted average purchase price of about $118,171 per coin, meaning the March sale came in at roughly 40 percent below the company’s average cost basis. The disclosure came through a Form 10-K annual filing submitted to the US Securities and Exchange Commission on March 30.
The company said the proceeds would be used to fund working capital needs and cover costs tied to recent merger activity. Nakamoto also said it intends to establish a US dollar operating reserve to finance strategic projects, integration activities and day-to-day expenses going forward.
A difficult first year for the Bitcoin strategy
Nakamoto, formerly a healthcare company called KindlyMD, only launched its Bitcoin treasury strategy in August 2025, when it rebranded and began accumulating BTC aggressively under CEO David Bailey, who is also known as a prominent Bitcoin advocate and founder of Bitcoin Magazine parent company BTC Inc.
The company raised over $740 million to accumulate Bitcoin near what turned out to be cycle highs, purchasing around 5,398 BTC at an average price of approximately $118,000 per coin.
The timing proved costly. Bitcoin’s price declined sharply from those levels, and the gap between where Nakamoto bought and where the market currently sits has been difficult to close.
For the full year ended December 31, 2025, the company reported a $166.2 million loss tied to changes in the fair value of its digital asset holdings, reflecting the drop from its average purchase price of $118,171 per coin to a year-end value of $87,519.
The company also posted a net loss of $52.2 million for the year, and separately reported an unrealized loss of $9.29 million on its investment in Japanese Bitcoin treasury firm Metaplanet, including foreign exchange impacts. Following the March sale, Nakamoto’s Bitcoin holdings stand at roughly 5,058 BTC, down from 5,342 BTC at the end of 2025.
Bailey struck a defiant tone in a statement accompanying the filing. “We remain committed to Bitcoin as a long-term strategic asset and are focused on growing our treasury in a disciplined and capital-efficient manner,” he said, adding that the company plans to wind down its legacy healthcare operations while focusing on integrating recent acquisitions including BTC Inc and UTXO Management.
The stock tells its own story
The financial results have taken a visible toll on investor confidence. Nakamoto’s stock, which trades on public markets under the ticker NAKA, peaked at $34.77 in May 2025 and now sits at just $0.226, a decline of roughly 99 percent from that high, erasing an estimated $23.6 billion in market value. The stock fell another 7.16% on Monday before recovering slightly in after-hours trading.
The Nakamoto story has become something of a cautionary tale within the broader Bitcoin treasury company space, a category that attracted significant attention after Strategy, formerly MicroStrategy, popularized the model of using capital markets to accumulate Bitcoin on a corporate balance sheet.
Strategy itself is not without pain: the company reported an operating loss of roughly $17.4 billion in the fourth quarter of 2025, driven almost entirely by unrealized losses on its holdings, with Bitcoin now trading below its average acquisition cost of around $76,000 per coin.
The difference is that Strategy has the scale and financial structure to absorb prolonged drawdowns. Nakamoto, having launched its strategy near the market peak and with a much smaller operational base, has had considerably less room for error.