David Bailey, a prominent figure in the crypto world and former crypto advisor to President Donald Trump, is making headlines with the launch of Nakamoto, a new publicly traded bitcoin investment company. This ambitious venture boasts a staggering $300 million in funding, secured through a combination of $200 million in equity and $100 million in convertible debt. The deal, which has been in the works since January, represents a significant leap forward in the increasingly competitive landscape of publicly traded bitcoin investment firms.
Nakamoto, named after the pseudonymous creator of bitcoin, Satoshi Nakamoto, will focus on acquiring and holding bitcoin. The company is poised to merge with an existing Nasdaq-listed company, with the official announcement expected early next week. A public listing is anticipated this summer, giving investors another avenue to access the volatile yet potentially lucrative bitcoin market.
Bailey’s venture follows a recent trend of large-scale bitcoin investment firms entering the public markets. One notable competitor is Twenty One, Jack Mallers’ SoftBank-backed company, which has secured billions of dollars in funding. Mallers himself highlighted the strategy of combining “blue-chip credibility with startup upside,” showcasing the appeal of established backing combined with the growth potential inherent in the cryptocurrency space.
Nakamoto’s strategy extends beyond simply holding bitcoin. The company plans to strategically invest its bitcoin holdings in businesses around the globe, with targets in Brazil, Thailand, and South Africa already identified. This diversification approach aims to generate returns not only from bitcoin’s price appreciation but also from the performance of its portfolio companies. The venture is also backed by a notable roster of investors and an impressive advisory board, though specific details remain undisclosed at this time.
This move by Bailey echoes the strategy pioneered by Michael Saylor and MicroStrategy, who famously converted their cash reserves into bitcoin in 2020. This bold decision transformed MicroStrategy into a de facto bitcoin holding company, and its stock price soared alongside bitcoin’s rallies. Now, Bailey seeks to replicate this success, capitalizing on the growing institutional interest in bitcoin and the increasing demand for exposure to this volatile asset class. The launch of Nakamoto is a significant development, underscoring the continued evolution and maturation of the cryptocurrency industry and its integration into traditional financial markets.
