Nakamoto CEO warns of hostile takeover amid BTC slump concerns

Nakamoto CEO David Bailey warns of hostile takeover risks as NAKA shares trade below bitcoin treasury value amid market decline

  • Nakamoto (NAKA) CEO David Bailey highlighted potential takeover activity among Bitcoin (BTC) treasury companies.
  • Nakamoto itself is considered vulnerable to a hostile takeover due to its low share price and market valuation.
  • NAKA shares are trading at less than 1% of their all-time peak price and below the value of the company’s BTC holdings.
  • A hostile takeover involves acquiring controlling voting rights against management’s wishes, potentially replacing company leadership.
  • Management may use common defenses against hostile takeovers, such as staggered board elections and poison pills.

Nakamoto CEO David Bailey recently stated in a Bloomberg interview that bitcoin treasury companies are increasingly targeting mergers and acquisitions by acquiring competitors and restructuring businesses. However, Nakamoto itself appears to be a potential target for a hostile takeover.

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NAKA’s shares have dropped nearly 98% from their all-time high reached in May 2025, with the current market capitalization at least 85% below the value of the company’s bitcoin holdings. The stock price has slid from a peak of $34.77 per share to around $0.75 today, trading well below the company’s net asset value based on its BTC treasury. Initially, NAKA shares traded at 23 times the intended bitcoin treasury value upon debut in May.

The company’s basic multiple-to-Net Asset Value (mNAV) ratio now stands at approximately 0.009x—a steep decline. The redefined mNAV, which adjusts for debt obligations, reads slightly higher at about 0.91x. While Nakamoto has debt and plans to pay premium prices for CEO Bailey’s associated companies, including Bitcoin Magazine and The Bitcoin Conference, its stock is currently at its lowest price since December 2024.

Analysts note that the current share price is under the value of Nakamoto’s bitcoin holdings, raising the possibility that an external party could acquire a controlling stake. A hostile takeover occurs when someone gains majority voting rights in a company without management approval, contrasting with agreed mergers or buyouts.

Such takeovers can involve purchasing shares in the market or negotiating private transfers. An alternative method, a proxy takeover, persuades shareholders to vote against current management’s interests. Acquirers can then replace board members or executives if they secure enough voting control.

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Management typically employs defensive measures against hostile bids. Common strategies include staggering board elections to slow leadership turnover, offering golden parachute compensation packages to executives, creating new stock classes with extra voting rights, or deploying a poison pill tactic. The poison pill allows existing shareholders to buy shares at a discount, diluting the hostile party’s stake.

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