Finance

NAKA Token Plummets 55% After Share Unlock: Is Nakamoto’s Bitcoin Strategy at Risk?

NAKA token plummeted 55% after PIPE investors sold shares. Market cap now below Bitcoin holdings.

byAndres Castro

September 16, 2025, 9:45 AM

A line graph depicts the fluctuating price of Bitcoin over time, illustrating trends in cryptocurrency trading.

As the price of Bitcoin fluctuates, traders watch the charts, hoping to predict the next move. By MDL.

Executive Summary

KindlyMD’s Nakamoto (NAKA) token experienced a sharp decline of over 55% on September 15, causing its market capitalization to fall significantly below the value of its Bitcoin holdings.

The market downturn was triggered by the September 12 effectiveness of a U.S. SEC-cleared resale registration, which allowed PIPE investors to sell previously restricted shares into the open market.

Following the sell-off, NAKA’s market capitalization of approximately $466.4 million now stands at a substantial 43% discount compared to the estimated $665.8 million value of its 5,765 Bitcoin holdings.

The Story So Far

The sharp decline in KindlyMD’s Nakamoto (NAKA) token was primarily caused by the effectiveness of a U.S. SEC-cleared resale registration, which allowed private investment in public equity (PIPE) investors to sell their previously restricted shares into the open market. These PIPE investors had previously provided significant capital to Nakamoto through various financing rounds, which the company subsequently used to acquire a large holding of Bitcoin. The resulting influx of shares created significant downward pressure on NAKA’s price, leading its market capitalization to fall well below the value of its underlying Bitcoin assets.

Why This Matters

The sharp decline in KindlyMD’s Nakamoto (NAKA) token, triggered by the SEC-cleared resale registration allowing PIPE investors to sell restricted shares, highlights how capital unlocks can severely impact a company’s market valuation. This event has caused NAKA’s market capitalization to fall significantly below its substantial Bitcoin holdings, creating a notable discount to its underlying assets and demonstrating the market’s immediate and negative reaction to an influx of previously restricted shares.

Who Thinks What?

PIPE investors utilized the effectiveness of an SEC-cleared resale registration to sell their previously restricted shares into the open market, triggering a sharp decline in NAKA’s token price.

The market reacted to the influx of newly available shares by driving NAKA’s price down, resulting in the company’s market capitalization falling substantially below the value of its Bitcoin holdings.

Nakamoto pursued a capital accumulation strategy through PIPE commitments and convertible notes, enabling the company to acquire 5,765 Bitcoin.

KindlyMD’s Nakamoto (NAKA) token experienced a sharp decline of over 55% on September 15, causing its market capitalization to fall significantly below the value of its Bitcoin holdings. This substantial sell-off followed the effectiveness of a U.S. Securities and Exchange Commission (SEC)-cleared resale registration, which allowed private investment in public equity (PIPE) investors to sell previously restricted shares into the open market.

Share Unlock Triggers Sell-Off

The catalyst for the market downturn was the September 12 effectiveness of a Form S-3 resale registration. This filing registered PIPE investors, including subscribers to a $51.5 million PIPE completed in June at $5.00 per share, as well as a larger initial PIPE from May priced at $1.12 per share, to offload their stock.

The influx of shares onto the open market put significant downward pressure on NAKA’s price. The company’s market cap now stands well beneath the value of its 5,765 BTC, creating a notable discount to its Bitcoin per share.

Nakamoto’s Capital Building and Bitcoin Strategy

Nakamoto’s capital accumulation strategy began in May with a merger agreement, securing approximately $511.7 million in initial PIPE commitments at $1.12 per share. This was later augmented by the $51.5 million June add-on at a higher price of $5.00 per share.

In August, the company continued its financial maneuvers, closing a $200 million senior secured convertible note on August 15 with an initial conversion price of $2.80 per share. Just four days later, on August 19, Nakamoto executed its first major post-merger purchase, acquiring 5,743.91 BTC for approximately $679 million. By August 26, the company had also established a $5 billion at-the-market program.

Valuation Discrepancy

Following the recent sell-off, NAKA’s market value has notably dipped below the estimated $665.8 million value of its 5,765 Bitcoin. At the close of market on September 15, the company’s market capitalization was approximately $466.4 million. This represents a substantial 43% discount when compared to the value of its underlying Bitcoin holdings.

When factoring in the $200 million convertible note, Nakamoto’s current enterprise value is approximately equivalent to the value of its Bitcoin holdings, highlighting the market’s reaction to the unlock of previously restricted shares.