Nakamoto Holdings, a company specializing in Bitcoin holdings led by CEO David Bailey, has witnessed a staggering 98% decline in its stock value since its peak earlier in May, largely attributed to a wave of investor sell-offs following its $563 million private investment in public equity (PIPE) deals.

The firm, which merged with KindlyMD, a healthcare operator based in Utah, has emerged as a key player in the public trading space by positioning itself as a Bitcoin holding entity. However, its financing approach, which relied on offering severely discounted shares to fund acquisitions of Bitcoin, faced setbacks when significant amounts of PIPE shares became available for sale in September. This surge in sales caused the stock price to plummet, wiping out billions in market valuation, according to Bailey in a recent Forbes interview.

Bailey, widely recognized for his active engagement within the Bitcoin sector and connections to the pro-crypto initiatives of former President Donald Trump, views this downturn as a strategic long-term play. He noted, “People looking for quick trades are costly for us,” advocating for investors who align with long-term objectives.

Despite the turbulence, Nakamoto Holdings retains 5,765 Bitcoin, approximately valued at $653 million based on current market estimates, maintaining its status as the 19th largest public Bitcoin holder according to BitcoinTreasuries.NET.

Bailey also declared intentions to integrate other business ventures into Nakamoto Holdings, including Bitcoin Magazine and hedge fund 210k Capital, aiming to enhance cash flow and solidify the firm’s standing.

Amid similar challenges, Metaplanet, a Bitcoin treasury company, is not spared from market pressures. Recently, it disclosed a ¥75 billion ($500 million) share buyback program aimed at boosting its stock price, which has recently dipped below its Bitcoin-backed net asset value (mNAV).