Nakamoto Sells Bitcoin to Support Operations Amid Balance Sheet Pressure
Nakamoto Holdings (NAKA), the bitcoin-focused firm founded by David Bailey, sold about 284 BTC for roughly $20 million in March, trimming its holdings as it continues its shift toward a bitcoin treasury strategy.
The company said the proceeds will be used for working capital and operational expenses following its acquisitions of BTC Inc. and UTXO, which are central to its transition into a bitcoin-focused platform, according to its annual report.
Nakamoto went public in May via a merger with healthcare provider KindlyMD and raised $710 million to pursue its treasury strategy.
The March sale accounted for approximately 5% of its bitcoin reserves, despite the firm’s stated intention to keep accumulating the asset. Based on disclosed figures, the average sale price was around $70,422 per bitcoin.
The move points to growing balance sheet strain. Nakamoto has a $210 million USDT loan from Kraken at an 8% interest rate, secured against most of its bitcoin holdings. This structure limits financial flexibility and could necessitate further bitcoin sales to meet interest obligations.
Financial results highlight the pressure. The company reported a pre-tax loss of $52.2 million for the year ended Dec. 31, widening sharply from a $3.6 million loss in the prior year. The deterioration was driven largely by a $166.1 million decline in the value of its digital assets following a late-2025 drop in bitcoin prices.
Shares of Nakamoto have declined 99% from their peak in May, underscoring investor caution as the company navigates its transition and ongoing financial challenges.
