Bitcoin PIPE Deals: A Flop or Just a Slow Burn?

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What to know:

  • Bitcoin treasury firms like KindlyMD (NAKA) and Strive (ASST) raised millions through PIPE deals to fuel aggressive bitcoin purchases and growth strategies.
  • Despite large-scale accumulation, both companies have seen their valuations collapse, raising doubts about whether the PIPE model can deliver lasting shareholder value in the bitcoin sector.

So, has the PIPE model failed for bitcoin treasury companies? The spectacular collapse of the share prices for KindlyMD (NAKA) and Strive (ASST) suggests that perhaps, just perhaps, we should rethink this whole “PIPE dream.” 😏

For those who aren’t familiar with the fancy lingo, a PIPE-short for Private Investment in Public Equity-sounds a lot like a deal you’d make with your shady cousin who knows a guy. Basically, institutional investors buy shares from a public company at a set price, often way below market value, allowing these companies to raise cash fast without the hassle of a long, drawn-out IPO. A fast track to funding, if you will. But as the saying goes, you get what you pay for… Or maybe, just maybe, not.

PIPE transactions are often favored by companies undergoing reverse mergers or going public via a SPAC (because who wouldn’t want a fancy acronym?). Recently, bitcoin treasury companies have jumped on the PIPE bandwagon, hoping to expand their holdings of everyone’s favorite digital currency, bitcoin. Spoiler alert: It hasn’t exactly gone as planned. 🚨

Despite their best efforts, it seems like these PIPE deals are burning investor capital faster than a bitcoin miner in July. 🔥

This feature is part of CoinDesk’s Bitcoin Treasuries Theme Week, sponsored by Genius Group.

A case study for PIPE

Let’s talk about KindlyMD (NAKA), a healthcare company that decided to dive into the bitcoin pool. In May 2025, they merged with a company (because what’s more fun than mergers?) and voila-Nakomoto was born. David Bailey, the big bitcoin advocate, became the CEO. So, what’s the secret sauce? A PIPE deal that raised $563 million, all to buy more bitcoin. 🚀

But hold your horses. The company also issued a $200 million senior secured convertible note (which sounds like a loan wrapped in a riddle) to Yorkville Advisors. Later, this deal got replaced with another note (because, why not?), bringing the grand total to a whopping $763 million. And what did they buy with all that money? A 21 BTC purchase here, another 5,743 BTC there, totaling a lot of bitcoin.

And guess what happened next? Their stock, which was once soaring at $30, plummeted faster than your excitement for a gym membership you just signed up for-dropping by 95%. The company’s market value is now so low, it’s worth less than the bitcoin they hold. 😬

Then we have Strive (ASST), founded by Vivek Ramaswamy, who thought it was a good idea to merge with Asset Entities via SPAC (because nothing says “success” like a SPAC deal). They raised $750 million in a PIPE deal priced at $1.35 per share, with a sweet 121% premium to ASST’s pre-merger price. Money well spent, right? They used the proceeds to buy 5,885 BTC, debt-free, no less!

But, oh dear. Strive’s stock also followed the same downward trajectory, falling by over 90% from its high of $12 to a mere $1 per share. Talk about a rollercoaster ride. 🎢

Caution is the word going forward

The less-than-stellar performance of NAKA and ASST raises serious questions about the fate of other bitcoin treasury SPAC/PIPE deals still in the works. Just look at Twenty One Capital (XXI), which announced a PIPE deal back in April and briefly saw its stock rise from $10 to $60, before nosediving to a current value of $20. What a surprise. 🙄

And let’s not forget Bitcoin Standard Treasury Company (BSTR), which plans to raise a staggering $3.5 billion through a SPAC merger, with $1.5 billion coming from a PIPE. Will it be another wild ride to the bottom? Stay tuned… 😜

In short, while PIPE deals offer a quick cash infusion for bitcoin treasury firms, they also come with a hefty dose of risk. Perhaps we should all be a little more cautious before jumping in. 💸

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2025-10-16 21:00