The Unraveling of a Crypto Empire: Inside Nakamoto Inc.’s 99% Collapse

The financial markets have witnessed another dramatic turn. According to a recent Bloomberg report, Nakamoto Inc., a public company controlled by Trump-aligned crypto advocate David Bailey, has seen its stock plunge approximately 99% from its peak. The steep decline began following the company's merger announcement in May 2025, erasing nearly all of its market value.

A Meteoric Rise and Rapid Fall

Nakamoto Inc.'s story once glowed with the promise typical of crypto ventures. David Bailey leveraged his influence to raise a substantial $760 million for the company, earmarked explicitly for Bitcoin reserves. Even more striking was the 640% return posted by his associated hedge fund during the same period—a figure that turned heads in traditional finance circles.

However, since the merger plans were unveiled last spring, the company's trajectory shifted dramatically. The persistent stock slide reflects not only changing market sentiment but also the inherent fragility of crypto-linked enterprises under regulatory scrutiny and market volatility.

Political Ties and Business Realities

In interviews, David Bailey has noted that he maintains irregular contact with the White House. This political connection once served as a key selling point for investors, many of whom believed it could offer protection in the uncertain regulatory landscape surrounding digital assets.

  • Major Funding with Clear Purpose: The $760 million was dedicated to Bitcoin accumulation, seen at the time as a bold bet on crypto's future.
  • The Hedge Fund Halo: The 640% returns brought credibility and attention to the wider group.
  • The Double-Edged Sword of Politics: Ties to the Trump administration generated visibility but also potential political risk.

The Fight for Survival Post-Collapse

Confronted with a near-total erosion of share value, David Bailey and his team are now focused on a daunting task: convincing markets and investors that Nakamoto Inc. still possesses a viable business foundation beneath the wreckage.

The challenge is multifaceted. Sentiment in the crypto sector has shifted, the regulatory environment is tightening, and investors have grown wary of the once-popular "story stocks." The company must demonstrate not just survival, but a sustainable business model adapted to a new market reality.

The case of Nakamoto Inc. serves as another reminder that in the highly volatile and ever-evolving crypto landscape, even firms with powerful political connections and impressive track records are not immune to market fundamentals. Its future now hinges on whether it can build a genuinely solid and transparent operational structure from the rubble—relying on more than past glories and political capital.