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How Nakamoto’s 99% crash exposed the dark side of Bitcoin DATs How Nakamoto’s 99% crash exposed the dark side of Bitcoin DATs

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How Nakamoto’s 99% crash exposed the dark side of Bitcoin DATs – Crypto News

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The idea of “buying the dip” has gone quiet as Bitcoin [BTC] continues to struggle. At press time, Bitcoin was trading near $66,131, down almost 3% in just 24 hours.

At the same time, the Crypto Fear and Greed Index has fallen to 5 out of 100, showing “Extreme Fear.” This is one of the lowest levels seen since 2019.

Crypto fear and greed index

Source: Alternative.me

In simple terms, investors are scared right now. But the bigger story is what is happening to large companies that made big bets on Bitcoin.

Nakamoto’s Bitcoin strategy failed

One major example is Nakamoto Inc. This company built its entire strategy around holding only Bitcoin. At one point, this approach was praised as smart and bold, but now, it looks very risky.

Over the last 280 days, Nakamoto Inc. has lost more than 99% of its market value. Around $23.6 billion has disappeared.

The company bought 5,398 Bitcoin at an average price of $118,000, near the top of the market. Today, that decision has left it with about $270 million in unrealized losses.

In simple words, they bought when prices were very high, and now they are stuck with heavy losses.

Coin Bureau’s executive weighs in

Nic Puckrin, co-founder of Coin Bureau and lead market analyst, has warned that this could create contagion risk. This means trouble at one company could spread to others that also rely heavily on Bitcoin.

In an email sent to AMBCrypto, Puckrin further noted, 

“Digital asset treasuries (DATs) are beginning to show signs of stress from the sharp sell-off in Bitcoin, which is affecting their share prices.”

He added, 

“Overall, Bitcoin treasury companies have just logged three straight weeks of selling – the first such streak in their admittedly short history.”

Stock price action and more

Additionally, Nakamoto Inc. stock has also fallen close to $0.24 and has lost around 97% of its value in just six months. 

Beyond company balance sheets, everyday activity on the Bitcoin network is also slowing down. The number of active addresses is falling, which means fewer people are sending or receiving Bitcoin.

Bitcoin active addresses

Source: Glassnode

At the same time, Open Interest in Futures and Options markets is declining. This means traders are closing their positions instead of opening new ones.

Bitcoin Open Interest declines

Source: CoinGlass

This further coincided with U.S. President Donald Trump recently announcing a sudden 15% global tariff on the 21st of February, and Bitcoin reacted like a risky tech stock.

Thus, looking ahead, the future for Nakamoto Inc. and similar firms looks difficult.

With the Fear and Greed Index stuck at extreme fear levels and company finances under pressure, the market is no longer hoping for a swift recovery. It is waiting for prices to hit a clear bottom.

Final Summary

  • Extreme fear in the market suggests most investors are focused on protecting capital, not chasing short-term profits.
  • Buying Bitcoin near market peaks has left many treasury firms trapped in heavy, long-term losses.
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