Nakamoto Inc.'s 99% Market Value Crash Exposes Dark Side of Bitcoin-Dependent Firms

The cryptocurrency market has been experiencing a tumultuous period, with Bitcoin's value plummeting over the past few days. One of the most affected companies is Nakamoto Inc., which has seen its market value drop by an astonishing 99% in the past 280 days.

This significant decline has left Nakamoto Inc. with around $23.6 billion in unrealized losses, making it a cautionary tale for investors and analysts alike. The company's decision to buy Bitcoin at the peak of the market has proven to be a costly mistake, as they are now struggling to make up for their losses.

According to Nic Puckrin, co-founder of Coin Bureau, this trend could have far-reaching consequences. He warned that the decline in Bitcoin's value could lead to a contagion effect on other companies that rely heavily on the cryptocurrency. This is evident from the fact that Nakamoto Inc.'s stock has fallen by around 97% in just six months.

Furthermore, data from Glassnode shows that the number of active addresses on the Bitcoin network is falling, indicating that fewer people are sending or receiving Bitcoin. Additionally, Open Interest in Futures and Options markets is declining, suggesting that traders are closing their positions instead of opening new ones.