David Bailey, CEO of BTC Inc. and a key cryptocurrency advisor to former President Donald Trump, has successfully raised $300 million to launch Nakamoto, a publicly traded bitcoin investment company. The funding consists of $200 million in equity and $100 million in convertible debt, according to a person familiar with the matter.
Nakamoto, named after bitcoin’s pseudonymous creator Satoshi Nakamoto, will focus on acquiring and holding bitcoin. The company plans to merge with an existing Nasdaq-listed firm in a transaction expected to be announced early next week, with its public listing anticipated this summer. Bailey’s venture will not only invest in bitcoin but also plans to acquire companies globally, including in Brazil, Thailand, and South Africa, and invest bitcoin into these acquisitions.
The new company is backed by prominent investors and features an advisory board comprising well-known figures. This move by Bailey follows a growing trend of bitcoin-focused public firms, including Jack Mallers’ Twenty One, which has secured billions of dollars in backing from SoftBank and Tether. Bitcoin investment firms like Nakamoto raise substantial funds through equity and debt to purchase and hold bitcoin, providing investors with an alternative way to bet on bitcoin’s price.
Michael Saylor’s Strategy (formerly MicroStrategy) pioneered this model by converting its cash reserves into bitcoin starting in 2020. This strategy transformed the software company into a major bitcoin holding company, with its stock value surging as bitcoin’s price rallied. Nakamoto aims to replicate this success by providing ‘blue-chip credibility with startup upside,’ as described by Jack Mallers, CEO of Twenty One, in a recent CNBC interview.
