On Bitcoin Treasury Companies: The Case Study of NAKA (NASDAQ: NAKA)
Yesterday, one of the most prominent Bitcoin treasury companies, $NAKA (NASDAQ: NAKA), plummeted 55% 📉 . This amplified its dismal one-month performance to -80% and marked a staggering 97% decline from its peak on May 22, 2025.
WHAT HAPPENED?
1️⃣ It began with an intensive marketing campaign, perfectly timed to capitalize on the "Bitcoin treasury companies" wave.
2️⃣ The stock price rose on very low volume before skyrocketing to over $30 per share in May 2025. There are unconfirmed allegations of wash trading—price manipulation by individuals connected to the company—which would have been straightforward to execute given the low volume-to-market-cap ratio at the time.
3️⃣ $NAKA sold a significant amount of equity (equivalent to over 80% of its fully diluted market cap) in mid-2025 at $1.12 USD per share.
4️⃣ Investors who acquired this equity at $1.12 were positioned for a massive 20x profit when the market price exceeded $20. Savvy investors hedged this enormous profit by shorting the stock.
5️⃣ Eventually, these shares began unlocking—allowing them to be sold on the open market—after 90 days, right around now.
6️⃣ The stock price collapsed, with the $1.12 level acting like a magnet pulling it downward.
This has left many retail investors, who bought shares in the $10-30 range during the hype, feeling rug-pulled. However, if private equity holders are sitting on substantial profits relative to the current public stock price, there's a strong likelihood they'll take those gains, triggering market collapses.
Several other Bitcoin treasury companies face similar large unlocks in the near future (e.g., as noted by @Pledditor on X regarding $ASST).
You can try to make an extra buck on Bitcoin treasury companies, OR you could simply buy Bitcoin, hold it in self-custody, and relax. 🌈
Further Reading:
🔶 Who bought $NAKA private equity?, from @Pledditor: https://x.com/Pledditor/status/1967631555469402175
🔶 Great research from @bigmagicdao, from early June 2025: https://x.com/bigmagicdao/status/1929924199881289962
#BitcoinTreasury #Bitcoin #Crypto #StockMarket #Investing
