TLDR
- David Bailey, CEO of Nakamoto Holdings, clarified that the company did not sell Bitcoin but invested it in other Bitcoin treasury companies.
- Bailey explained that Nakamoto’s Bitcoin balance sheet is diversified through equity investments in Bitcoin-related firms.
- Despite the explanation, many in the crypto community still view the transaction as a sale of Bitcoin holdings.
- Bailey emphasized that Nakamoto plans to eventually “harvest” its investments back into Bitcoin on its balance sheet.
- Nakamoto Holdings has faced financial difficulties, including a $23 million loss on digital assets since May.
David Bailey, CEO of Nakamoto Holdings, has responded to rumors that his company sold a large amount of Bitcoin. The speculation started after a Bitcoin treasury tracker, BTC Treasuries, reported a sale of 367 BTC. This reduced Nakamoto’s Bitcoin holdings from 5765 BTC to 5398 BTC.
Bailey clarified the situation on X, emphasizing that the transaction was not a sale. He explained that Nakamoto had invested in other Bitcoin treasuries. “We didn’t ‘sell’ bitcoin. We invested the Bitcoin across several international treasury companies,” he stated. These investments were made to diversify the company’s balance sheet, he added.
https://x.com/DavidFBailey/status/1991537770351727038?s=20
Despite this explanation, Bailey’s statement has not entirely convinced the crypto community. Many Bitcoiners view the transaction as a sale, especially given the current market conditions. The tracker’s data implied Nakamoto reduced its holdings, which some believe equates to a sale of the digital assets.
David Bailey Explains the Investment Strategy
Bailey compared the investment strategy to buying equity in Bitcoin companies. He suggested it was similar to buying shares of Bitcoin-focused companies like IBIT. “We want to put a bitcoin equity in every capital market globally,” Bailey stated. He argued that while BTC was no longer directly held by Nakamoto, its value was still reflected in equity stakes.
The CEO also assured that Nakamoto would eventually “harvest” these investments back into Bitcoin. “Eventually we’ll harvest those investments back into bitcoin on our balance sheet,” Bailey explained. This long-term strategy aims to capture value from Bitcoin exposure while diversifying Nakamoto’s holdings.
However, many users questioned Bailey’s explanation in the comments. One user noted that sending Bitcoin to another entity in exchange for equity was akin to a sale. Bailey defended the approach, maintaining that it was an investment in Bitcoin-related companies rather than a direct sale of the digital currency.
Nakamoto Holdings Faces Financial Struggles
Nakamoto Holdings has faced challenges since May, with its stock price suffering significant losses. The company recently revealed a $23 million loss on digital assets. Bailey cited the “complexity of accounting” as a reason for the financial difficulties.
Nakamoto’s financial issues have compounded since its plans to acquire BTC Inc. The company initially intended to pay a 10x multiple for BTC Inc., valued at $306 million. This deal, structured as stock, has become more complicated due to Nakamoto’s declining stock price.
Bailey, however, has emerged relatively unscathed from the situation. Despite stepping down as CEO of BTC Inc., he remains its chairman. He continues to focus on Nakamoto’s strategy, overseeing the investments that could shape its future trajectory.
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