Nakamoto Inc. (NASDAQ: NAKA), the publicly traded bitcoin treasury company led by prominent Bitcoin advocate David Bailey, disclosed in its annual Form 10-K filing that it sold 284 bitcoin in March 2026 for approximately $20 million. The sale represents a realized loss of roughly 40%, based on the company's weighted-average acquisition cost of approximately $118,171 per bitcoin.
Transaction Details and Financial Impact
The 10-K filing for the fiscal year ended December 31, 2025, revealed that Nakamoto sold the bitcoin at an average price of roughly $70,400 per BTC, resulting in an estimated loss of $13 million to $14 million. Proceeds from the sale were used to establish a U.S. dollar operating reserve, covering integration costs from recent acquisitions, general operating expenses, interest payments on a Kraken loan, and working capital needs.
From Healthcare Firm to Bitcoin Treasury
Originally known as KindlyMD, a healthcare company, Nakamoto pivoted to a bitcoin treasury strategy via a reverse merger in August 2025. Over the remainder of that year, it amassed 5,342 BTC at a total cost of approximately $631.39 million. However, by year-end 2025, bitcoin's price had fallen to around $87,519, reducing the market value of its holdings to roughly $467.5 million and triggering a $166.2 million unrealized fair-value loss for the fiscal year.
Acquisitions and Integration Costs
In February 2026, Nakamoto completed all-stock acquisitions of BTC Inc., the operator of Bitcoin Magazine and The Bitcoin Conference, and UTXO Management, a bitcoin-focused investment firm. While these deals added revenue-generating operations and strengthened the company's ecosystem, they also introduced substantial integration costs that strained cash reserves. CEO David Bailey commented, "Our first year was dedicated to assembling that engine. We established a robust Bitcoin treasury, built a scalable capital strategy, and, with the acquisitions of BTC Inc and UTXO, transitioned into a fully integrated Bitcoin operating business."
Stock Price Collapse and Market Context
NAKA shares have fallen roughly 40% year-to-date as of late March 2026 and are down approximately 99% from their 2025 peaks. Dilution from the all-stock deals, bitcoin price pressure, and a broader sell-off among treasury-model companies have weighed on the stock. On March 31, shares dropped around 7% intraday to approximately $0.21 before recovering modestly in after-hours trading. The company is also winding down its legacy healthcare operations to focus entirely on bitcoin-native businesses.
Outlook and Industry Implications
Following the sale, Nakamoto holds approximately 5,058 bitcoin in treasury. The company stated it remains committed to growing its holdings in a "disciplined and capital-efficient manner." Bailey emphasized that the sale was a short-term liquidity measure, not a retreat from the long-term bitcoin strategy. Still, the broader context is sobering: corporate bitcoin buying has slowed considerably from its 2025 pace, with only a few firms like Strategy maintaining aggressive accumulation. For smaller treasury firms, balancing accumulation ambitions with operational realities remains a critical challenge. Nakamoto's loss-taking sale serves as a cautionary tale about the liquidity risks embedded in leveraged bitcoin strategies.