David Bailey, the CEO of BTC Inc. and a notable crypto advisor to former President Donald Trump, has successfully raised $300 million to establish a publicly traded bitcoin investment company named Nakamoto. This ambitious venture, which has been in the works since January 2025, consists of $200 million in equity funding and $100 million in convertible debt, as confirmed by CNBC.
Nakamoto, named after the pseudonymous bitcoin creator Satoshi Nakamoto, aims to focus on acquiring and holding bitcoin. The company is expected to merge with an existing Nasdaq-listed entity in a transaction that is anticipated to be announced early next week. A public listing for Nakamoto is projected for this summer, marking a significant milestone in the cryptocurrency investment landscape.
According to a source familiar with the matter, Nakamoto plans to extend its reach globally, targeting acquisitions in countries such as Brazil, Thailand, and South Africa. The company's strategy involves investing its bitcoin holdings into these acquired companies, thereby enhancing their value and market presence.
Bailey's venture is not alone in the burgeoning bitcoin investment space. Jack Mallers, known for launching the Strike payments app, has also secured billions for his bitcoin-holding venture, Twenty One, which is backed by major players like SoftBank and Tether. Mallers expressed confidence in his company's potential, stating, "What we really pride ourselves on is being blue-chip credibility with startup upside." He emphasized that despite entering the market with substantial capital, his firm remains agile enough to grow and deliver bitcoin-denominated returns in an increasingly competitive landscape.
However, the cryptocurrency industry is facing scrutiny, particularly concerning Trump's connections to it. Congressional Democrats are raising alarms about the former president's personal ties to the cryptocurrency sector, complicating bipartisan efforts to regulate digital currencies. Notably, two cryptocurrency investments linked to Trump-affiliated entities have reportedly generated at least $300 million in trading fees from sales of his meme coin and other digital assets since January 2025.
In late April, a Trump-affiliated company promoted the $TRUMP meme coin by offering an "intimate private dinner" with the former president at his Virginia golf club, which led to an 80% surge in the coin's value. Furthermore, on May 1, World Liberty Financial, another Trump family crypto firm, disclosed that one of its digital coins is being utilized by an Abu Dhabi government-backed investment firm for a massive $2 billion investment in the cryptocurrency exchange Binance. This foreign investment raises questions about potential conflicts of interest and the implications of foreign governments engaging with Trump's crypto assets.
As lawmakers on Capitol Hill attempt to advance legislation for a regulatory framework for stablecoins—cryptocurrencies pegged to traditional assets—tensions are escalating. Nine Democrats who initially supported the stablecoin bill, known as the GENIUS Act, abruptly withdrew their backing on May 3, citing concerns that the legislation fails to adequately address issues like money laundering and national security.
Rep. Maxine Waters, D-California, expressed her frustration by walking out of a House committee hearing on cryptocurrency on May 6, stating, "because of the corruption of the president of the United States and his ownership of crypto and his oversight of all the agencies." This sentiment was echoed by Sen. Adam Schiff, D-California, who has called for an investigation by the Office of Government Ethics into the president's crypto connections.
Sen. Richard Blumenthal, the top Democrat on the Senate Permanent Subcommittee on Investigations, has initiated his own inquiry into Trump's profits from cryptocurrency, demanding insights into the business structures and potential conflicts of interest tied to World Liberty Financial and the company behind the $TRUMP memecoin. Blumenthal criticized Trump's actions, stating, "Donald Trump is selling cryptocurrency like snake oil in the Wild West, and he's put a for sale sign on the White House for his meme coin."
In response to these mounting concerns, Sens. Jeff Merkley, D-Oregon, and Chuck Schumer, D-New York, are set to introduce legislation on May 7 that would prohibit the president, vice president, members of Congress, and their families from creating crypto assets. Merkley emphasized the need for integrity in governance, asserting, "If we're going to have any credibility in working for the people, we have to end this vastly corrupt enterprise the president's engaged in."
While Democrats currently hold a minority position in both the House and Senate, the filibuster provides them with some leverage over the fate of legislation in the upper chamber. Meanwhile, White House spokeswoman Anna Kelly defended Trump, stating that he is "dedicated to making America the crypto capital of the world" and that his assets are held in a trust managed by his children, claiming there are no conflicts of interest.
On the Republican side, concerns about the GENIUS Act have also surfaced. Senators Josh Hawley, John Kennedy, and Rand Paul have expressed uncertainty about their support for the legislation. Sen. Bill Hagerty, the primary sponsor of the bill, indicated that negotiations with Democrats are ongoing, stating, "we're very close to having everything concluded and I expect it to be concluded by the end of the week."
As the cryptocurrency landscape continues to evolve, the intersection of politics and digital currency remains contentious. With significant financial interests at stake and growing scrutiny from lawmakers, the future of bitcoin investments and regulations hangs in the balance.
