Nakamoto Sells $20M Bitcoin at 40% Loss to Fund Operations

Published on: March 31, 2026, 11:50 AM EDT

Nakamoto Holdings sold $20 million worth of bitcoin at a significant loss as it works to manage liquidity and fund ongoing operations.

Key Takeaways

Nakamoto sold 284 BTC for $20 million, marking about 5% of its total holdings.
The sale price of around $70,422 per bitcoin was nearly 40% below its acquisition cost.
Proceeds will support working capital and business operations after recent acquisitions.
The move reflects growing financial pressure and liquidity constraints.

What Happened?

Nakamoto Holdings, a bitcoin treasury firm founded by David Bailey, sold a portion of its bitcoin reserves in March to raise cash. The company disclosed that it offloaded 284 BTC for $20 million as part of efforts to maintain operations and integrate recent acquisitions.

The sale comes as the firm faces mounting losses, declining stock value, and increased debt obligations tied to its bitcoin holdings.

Nakamoto Reports FY25 Q4 and Full Year 2025 Results; Provides Update on Bitcoin Strategy

Read the full announcement: https://t.co/h1OROzHTOR
— Nakamoto (@nakamoto) March 31, 2026

Nakamoto Sells Bitcoin Below Cost

Nakamoto Holdings confirmed in its latest filing that it sold 284 BTC at an average price of $70,422 per coin, generating roughly $20 million. The transaction represents approximately 5% of its bitcoin holdings.

However, the sale stands out because it occurred at a steep loss. The company’s average acquisition cost was about $118,171 per bitcoin, meaning the sale was executed at nearly a 40% discount.

This makes the move one of the more notable examples of a corporate bitcoin holder liquidating assets below cost during the current market cycle.

Liquidity Pressure and Operational Needs

The company stated that the proceeds will be used to replenish working capital and fund operations, especially following its recent acquisitions of BTC Inc. and UTXO Management.

These acquisitions are central to Nakamoto’s shift toward becoming a bitcoin focused platform, moving away from its legacy healthcare business.

At the same time, Nakamoto is dealing with tight liquidity conditions. The firm holds an 8% USDT loan worth $210 million from Kraken, which is secured by a significant portion of its bitcoin reserves. This structure limits financial flexibility and could force further asset sales if obligations are not met.

Financial Losses and Balance Sheet Impact

Nakamoto’s financial performance highlights the pressure behind the decision. The company reported a pre-tax loss of $52.2 million for 2025, a sharp increase from $3.6 million in losses the previous year.

A major factor was a $166 million decline in the value of its digital assets, driven by a drop in bitcoin prices during late 2025. By the end of the year, the firm held $467.5 million in digital assets, including 1,625 unencumbered BTC.

Notably, the company has not purchased additional bitcoin since the end of 2025, making the March sale a clear shift from its earlier accumulation strategy.

Strategic Shift Away from Healthcare

Nakamoto is also undergoing a broader transformation. After going public through a merger with KindlyMD and raising $710 million, the company is now planning to exit its legacy healthcare operations, which generated only $1.8 million in revenue last year.

CEO David Bailey said:

“

The next phase of Nakamoto will be defined by execution. We are focused on completing the integration of our acquisitions, driving operating leverage, and scaling our company through expanded products, services, and growth initiatives across each of our verticals.

He added that the firm will continue to evaluate high conviction M&A opportunities.

Stock Performance Reflects Market Concerns

Investor sentiment has weakened significantly. Nakamoto’s stock has fallen as much as 99% from its all time high in 2025, with continued volatility in recent trading sessions.

The decline reflects broader concerns about the company’s financial stability, debt exposure, and reliance on bitcoin price movements.

CoinLaw’s Takeaway

I see this as a reality check for bitcoin treasury companies. In my experience, holding large amounts of a volatile asset like bitcoin works well during bull runs, but it becomes risky when prices drop and debt obligations remain fixed.

What stands out to me is that Nakamoto had to sell at a loss just to stay operational. That signals real pressure, not just a strategic move. I found that when companies start liquidating core assets below cost, it often points to deeper balance sheet stress.

If bitcoin prices do not recover strongly, I believe more firms following this treasury model could face similar situations.