- NAKA plunged 99.32% in 280 days, erasing $23.64 billion after heavy Bitcoin purchases near record highs.
- Nakamoto Inc. bought 5,398 BTC for nearly $118,000, now carrying about $270 million in unrealized losses.
- Falling trading volumes and weak sentiment followed the crash, while Bitcoin price movements remain central to recovery hopes.
Nakamoto Inc.’s Bitcoin treasury strategy led to a steep collapse, with NAKA falling 99.32% over 280 days and erasing $23.64 billion in market value as of February 21, 2026. The company bought 5,398 BTC near $118,000, now showing $270 million in unrealized losses, raising concerns about concentrated Bitcoin exposure and treasury risk management.
Bitcoin Bet Near Market Highs
Nakamoto Inc. increased its Bitcoin holdings when prices traded near record levels. The purchase of 5,398 BTC was positioned as a long-term treasury move. However, Bitcoin prices later retreated, and the value of the holdings declined. As Bitcoin corrected, NAKA entered a prolonged bearish phase.
Market data shows the token lost value steadily over 280 days. The fall erased nearly the company’s entire market capitalization. On-chain activity during the period indicated increased selling pressure. Large token holders reduced positions during key downturns. Trading volumes spiked during sell-offs and later weakened as prices stabilized at lower levels.
The company has not announced a reversal of its Bitcoin treasury approach. Public data shows the unrealized losses remain tied to the Bitcoin position. The downturn mirrors earlier crypto cycles where assets fell more than 90% from peaks.
Market Reaction and Trading Activity
The 99.32% decline has affected broader crypto sentiment. Social media activity and trading discussions increased as the losses deepened. Fear-based indicators moved higher during the steepest drops. Daily trading volumes in NAKA fell as the price collapsed.
Lower volumes often signal reduced participation from retail and institutional traders. Exchange data suggests activity dropped from peak levels seen during earlier rallies. Market participants are comparing the event to prior crypto market crashes. Some traders are monitoring technical indicators such as relative strength index levels below 30.
These levels are often linked to oversold conditions. Bitcoin price movements remain central to the token’s outlook. Traders are watching key Bitcoin support zones for stability. Any sustained recovery in Bitcoin could affect related assets, including NAKA.
Broader Crypto and Cross Market Signals
The crash has also influenced discussions around corporate Bitcoin strategies. Firms that hold large Bitcoin reserves face exposure to price volatility. Concentrated positions can amplify balance sheet swings during corrections. Some investors are reviewing correlations between crypto tokens and technology equities.
Risk appetite often shifts between digital assets and growth stocks. Market rotations have been observed during previous crypto downturns.
Other blockchain and AI-linked tokens have seen price pressure during the same period. However, performance varies based on project fundamentals and liquidity levels.
Market participants continue to track institutional flows and fund allocations. The $23.6B Erased: Inside NAKA’s Bitcoin Treasury Disaster reflects the effect of timing and exposure in volatile markets. The token’s 99.32% fall over 280 days stands as one of the steepest declines among major crypto-linked projects in 2026.
Source: https://www.livebitcoinnews.com/23-6b-erased-as-naka-crashes-99-after-bitcoin-bet/
