Key Insights
- Nakamoto Holdings, led by US Bitcoin advocate David Bailey, will buy around 6,400 BTC this week.
- The purchase comes after as much as $763 million in capital raises earlier this year.
- The deal will attempt to avoid shaking the market via a Volume Weighted Average Price (VWAP) approach.
Donald Trump’s campaign advisor, David Bailey, is about to make one of the largest crypto purchases in recent history. Bailey will reportedly lead Nakamoto Holdings in buying roughly $763 million worth of Bitcoin this week.
He described the move as a “smash buy.” This marks the start of the plan to become one of the world’s largest corporate holders of Bitcoin.
Inside Nakamoto Holdings’ Strategy
Nakamoto Holdings launched its public market in May by merging with Nasdaq-listed KindlyMD. The deal allowed the company to enter the public markets while securing massive capital to build its Bitcoin treasury.
The merger included $511.5 million from a Private Investment in Public Equity (PIPE) round. More than 200 investors backed it. These included crypto-focused funds like Off the Chain Capital and investment firms like VanEck.
KindlyMD also issued $200 million in senior secured convertible notes as part of the transaction. June alone saw the combined company raise an additional $51.5 million, bringing its total capital to about $763 million.
Executing the $763 Million Purchase
Bailey confirmed that Nakamoto Holdings will spend $763 million in one fell swoop. This means the purchase will equal about 6,400 BTC at current market prices.
While Bailey called it a “smash buy,” the actual Bitcoin buy will follow a Volume Weighted Average Price (VWAP) approach. This method splits a large order into smaller trades that will be spread over time to avoid sudden price movements.
Anchorage Digital will handle the transaction and provide custody through over-the-counter (OTC) markets.
Comparing to Other Corporate Bitcoin Holdings
Nakamoto’s move is smaller than that of MicroStrategy’s biggest buys. However, it has immediately placed the company among the largest corporate Bitcoin holders.
According to BitcoinTreasuries.NET, 17 organisations have added Bitcoin to their reserves in the past month. This brings the total number of companies holding Bitcoin to 221, with more than 1.24 million BTC combined.
Bailey has indicated that this purchase will not be the last. He says that Nakamoto will undergo more fundraising efforts to increase its Bitcoin reserves.
Bailey’s Political and Bitcoin Advocacy in the US
David Bailey has been one of the most visible Bitcoin evangelists in the US, especially after co-founding BTC Inc. It is the parent company of Bitcoin Magazine. His involvement in US politics grew when he began advising Donald Trump on crypto policy.
Earlier this month, Bailey said he was considering raising between $100M and $200M for a political action committee (PAC). This committee is aimed at advancing Bitcoin-related priorities in the US. Bailey noted that Nakamoto Holdings can even anchor such fundraising.
His influence has been linked to Trump’s more positive stance toward Bitcoin. He continues to set himself at the centre of new developments within the sector.
Corporate Bitcoin Trend Continues
The planned Bitcoin from Nakamoto Holdings shows the rising trend of companies adding Bitcoin to their balance sheets. Over the last few weeks, more than a dozen new organizations have announced more holdings.
As more corporations hold Bitcoin, the supply available for trading may shrink. This could lead to fewer dramatic price swings in the market. Analysts think long-term treasury holdings might stabilize Bitcoin’s volatility.
Nakamoto’s purchase is another sign that institutional interest is growing. If the trend continues, more companies are expected to be inspired to adopt more Bitcoin-friendly policies.
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