Shares of Nakamoto Holdings (NAKA) have plummeted as the Bitcoin (BTC) treasury company warns of increased price volatility.
In a new letter to shareholders, NAKA CEO David Bailey says new shares from Private Investment in Public Equity (PIPE) fundraising can now be sold on the public market and may cause the stock to have unpredictable price swings for weeks.
“On Friday, September 12th, we filed Form S3, registering the shares sold in our PIPE fundraising. With these shares entering the market, we expect share price volatility may increase for a period of time. However, we view this moment as a critical opportunity for us to establish our base of aligned shareholders who are committed to our long-term vision.
The foundation we build over the next few weeks and months will propel our strategy forward, for those that want to be part of it. For those shareholders who have come looking for a trade, I encourage you to exit. This transition may represent a point of uncertainty for investors, and we look forward to emerging on the other side with alignment and conviction amongst our backers. We’ve been working hard to prepare for what’s next, we have a plan, and we are prepared.”
Amid the CEO’s warning, NAKA’s shares plummeted from $2.78 at the close of the market on Friday to $1.24 at the close of the market on Monday.
At time of writing, NAKA shares are trading for $1.43.
The company currently holds 5,765 BTC on its balance sheet and has a market cap of $537.8 million.
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