‘Noise on Twitter’ – David Bailey denies scam claims after Bitcoin treasury Nakamoto falls 99% 

David Bailey, Chairman and CEO of Bitcoin treasury Nakamoto (Nasdaq: NAKA), has dismissed allegations of a rip-off after the agency’s inventory crashed 99%.

For Bailey, the criticism leveled in opposition to him and the agency is simply “noise on Twitter.”

Supply: X/David Bailey 

Baiely introduced that Nakamoto acquired BTC Inc., the model behind Bitcoin Journal and The Bitcoin Convention, and UTXO Administration, a BTC-focused hedge fund. 

These two companies have been additionally based by Bailey. Nevertheless, Nakamoto’s opaque transactions have since drawn scrutiny from the neighborhood. 

Bitcoin neighborhood backlash in opposition to Nakamoto

In Could 2025, Nakamoto introduced a merger with a little-known company referred to as KindlyMD. The inventory exploded from $2 to over $30, posting beneficial properties of 1,400% inside days. 

In keeping with analyst Justin Bechler, some buyers backing the merger secured a profitable deal and purchased NAKA shares at a fraction of what retailers have been supplied.

The primary spherical of buyers purchased at $1.12 per share, whereas retail purchased at $28 or extra. The deal helped Bailey increase $510 million in financing and $200 million in convertible notes. 

Bechler added that the second spherical of buyers helped Bailey increase $51.5 million at $5 per share, which was nonetheless decrease than the retail shopping for value. By the point the merger was finalized in August, the buyers have been the primary to dump, hurting the retail. 

The inventory has since dropped by 99% from its Could excessive. 

Supply: NAKA, TradingView 

Apart from, the agency has reportedly entered into overcollateralized mortgage agreements that would outcome within the forfeiture of its 5,765 BTC on the expense of NAKA shareholders. 

Moreover, critics have claimed that the latest buyout of BTC Inc. and UTXO Administration didn’t contain shareholder approval. 

Reacting to the allegations, analyst Felix Jauvin cautioned, 

“We’ve got to pay for our DAT sins earlier than we’ve an opportunity of being a critical trade once more. Disgrace”

Bitcoin treasury flows wane

BTC’s value decline has additional dented Nakamoto’s outlook.

Because the October crash, Nakamoto’s BTC holdings have dropped beneath its enterprise worth, as proven by the mNAV falling beneath 1. Put in a different way, the market appeared to be bearish on the BTC treasury agency. 

Supply: Blockworks

Moreover, the general demand from BTC treasuries (orange) has additionally waned after a weak restoration try in January.

With fluctuations in ETF flows, these key gamers may undermine BTC’s odds of value restoration. 

Supply: DeFiLlama

Closing Abstract

• David Bailey denied claims of utilizing retail as exit liquidity and flawed debt administration, calling the criticism “noise on Twitter.”
•  Nevertheless, critics imagine that Nakamoto’s actions broken the broader Bitcoin trade’s fame.