- Trump crypto adviser and Nakamoto CEO David Bailey recently revealed their company’s plan to buy up to $1 billion worth of Bitcoin.
- The exec immediately retracted from the initial plan, stating that they only raised $762.5 million in funding for their BTC purchase.
David Bailey, CEO of Nakamoto Inc., boldly proclaimed that their company is about to fulfill their ambition of “smash buying” Bitcoin (BTC). He told his over a hundred thousand followers on the social media platform X (formerly Twitter) that they plan on acquiring $1 billion in one go.
From $1B Bitcoin Purchase Plan to $762.5M
Later, Bailey’s follow-up post revealed that his group may only be able to round up around $762.5 million from a fundraising event. Despite missing the planned billion-dollar mark, the cryptocurrency community is bracing itself for the possible effect of such a significant inflow into the BTC market.
Additionally, the Nakamoto CEO clarified they won’t be “smash buying” Bitcoin after all. Instead of a single transaction, the company would employ a Volume Weighted Average Price (VWAP) method to mitigate risks, including slippage and other factors caused by the asset’s inherently short-term volatility.
How Much Bitcoin Will Nakamoto Buy?
Bitcoin price swung between a $118,159.03 low and a $121,732.27 high in the last 24 hours. Assuming that prices will still fall within the range by the time Nakamoto executes its purchases, the company could immediately lock in 6,263 BTC to 6,453 BTC.
That amount of Bitcoin could propel Nakamoto instantly to the 14th rank among the top companies holding Bitcoin, falling between Galaxy Digital Holding’s 6,894 BTC haul and Next Technology Holding’s 5,833 BTC supply.
Why This Matters?
The expected supply that Nakamoto’s purchase will net is minuscule compared to Bitcoin’s circulating supply of 19.91 million. It would only make up 0.03% of the float.
Nonetheless, whale purchases have often influenced market sentiment to some degree. Hence, such a move signaling strong institutional confidence in the asset’s long-term value will probably boost trader and investor interest in the short run. The heightened optimism could also spill to assets strongly correlated with Bitcoin’s price movements or tokens bearing the Nakamoto moniker.
On the other hand, traders and investors should remain vigilant as speculators who have placed their trades on or before the announcement could trigger a massive profit-taking if prices move to the upside really quickly.
Why is Bailey Bullish on Bitcoin?
In another post, Bailey highlighted that they have a “one-of-a-kind strategy” for Bitcoin. He claimed that once Nakamoto sets things in motion, people will understand why it will become one of the top holders of BTC globally. The exec didn’t elaborate on what he meant with such a statement, but he pointed out that their company is “building a Bitcoin juggernaut.”
Bailey has been known to mix his Bitcoin advocacy with some level of trolling in his previous posts. However, it’s hard to dismiss his status as one of US President Donald Trump’s crypto advisers. With that, some suspect the White House may be cooking another big announcement regarding Bitcoin that is still under wraps. Others alleged Nakamoto and its CEO may have already cast their trades earlier, and they’re only stirring the market with the delayed announcements to keep the hype going.
Only time will tell whether Nakamoto and Bailey are making the right bet or not.
Disclaimer: The facts and analysis presented here are only for informational purposes. Readers should not interpret the content of this article as financial advice or product recommendation.
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