NAKA Plunges 54% in Single Session—Bitcoin Treasury Strategy Faces Investor Backlash

Another day, another crypto bloodbath—NAKA's brutal 54% collapse signals growing fatigue with Bitcoin-backed equities.

Market Reality Check

Investors are dumping Bitcoin treasury plays like hot potatoes. Who needs volatility hedging when the hedge itself craters more than the asset it's supposed to protect?

Wall Street's Latest Casualty

Traditional finance types love talking digital transformation—until they actually have to hold digital assets on their balance sheets. Suddenly everyone remembers they preferred Treasury bonds.

The numbers don't lie: 54% in one session isn't a correction—it's a condemnation. Maybe next time try diversifying beyond 'number go up' theology.

DAT saturation signals

Grayscale’s August report documented growing investor exhaustion toward digital asset treasury (DAT) companies, noting that bitcoin exchange-traded products experienced their first monthly net outflows since March, with $755 million in redemptions.

The report measured supply-demand imbalances through “mNAV” ratios comparing market capitalizations to underlying crypto asset values.

According to Grayscale, mNAV ratios for major DAT companies have converged toward 1.0, indicating a balance between supply and demand rather than the premium valuations these vehicles previously commanded.

The result suggests investors no longer pay premiums for crypto exposure through public equity instruments. Despite apparent exhaustion regarding Bitcoin treasury companies, altcoin DATs continue to emerge.

Altcoin treasuries

Recently, new digital asset treasury announcements for Solana, Cronos, and other tokens surfaced. This indicates that sponsors continue to launch vehicles despite a weakening investor appetite.

The massive equity raise necessary to fund Bitcoin acquisitions dilutes existing shareholders significantly while providing no operational cash FLOW improvements for KindlyMD.

Bitcoin’s recent price uncertainty compounds these concerns, as the company’s market value becomes directly tied to BTC’s performance rather than underlying business fundamentals.

Yet, CryptoQuant head of research Julio Moreno suggested that NAKA’s crash is not related to Bitcoin’s recent uncertainty, but rather to insiders’ activity.

He stated:

“Bitcoin treasury company NAKA is down more than 50% TODAY as insiders dump, and more than 90% since ATH.”

Moreno reiterated that DAT companies are just the latest mania of this phase of the cycle, similar to the emergence of memecoins earlier and non-fungible tokens (NFTs) in 2021.