Kindly MD shares dropped over 54% to $1.26 after the SEC approved trading of restricted stock from a $200 million PIPE deal. The PIPE, or private investment in public equity, gave certain investors shares at a discount, but those shares could not be sold until the company filed and cleared an S3 registration. Once the SEC approved the registration, the shares became tradeable, and many investors sold, sending the stock down hard. Kindly MD, which trades on the Nasdaq under the NAKA ticker, saw over 89 million shares change hands, the highest volume since a large but unexplained spike in February when more than 219 million shares traded in a single day.
CEO David Bailey addressed shareholders in a letter, warning about volatility during this transition. He said that short-term traders should exit if they lack conviction, while long-term investors willing to stay the course may find value. Bailey wrote that Kindly MD is becoming more than a healthcare company, as it now operates a Bitcoin treasury through its merger with Nakamoto Holdings. That deal made Nakamoto Holdings a subsidiary of Kindly MD, tasked with managing Bitcoin financial services under the Nakamoto brand. Bailey has also said the company’s mission is to become a leading Bitcoin-native financial institution, not just a healthcare provider with digital assets on its books.
The shift has created unusual numbers for investors to follow. Kindly MD’s market cap now sits around $504 million, which is less than the $663 million value of its 5,765 Bitcoin holdings. Analysts often use the mNAV ratio to measure the difference between a company’s market cap and the value of its Bitcoin. A ratio below 1.0 shows the stock trades at a discount to the Bitcoin on its balance sheet. Kindly MD’s mNAV has fallen to about 0.75, which means the stock trades well below the worth of its Bitcoin treasury. This discount has drawn attention from investors who track Bitcoin treasury companies.
The Nasdaq has rules that add another layer of risk. If a stock trades below $1 for 30 days in a row, the company receives a warning and has 180 days to fix the issue or face delisting. In November 2024, Kindly MD shares closed below $1 more often than they do now, but the price later recovered. Other Bitcoin treasury firms have also faced similar warnings in the past. If Kindly MD cannot maintain a price above $1, the same process may occur again, raising concerns for NAKA stock holders who already worry about volatility.
Trading activity has been intense. Almost 80 million shares moved in one day as investors reacted to the SEC approval and the PIPE shares entering the market. Bailey posted on X to thank supporters and noted he looked forward to meeting new shareholders. He also mentioned ongoing meetings with PIPE investors, many of whom he has known for years, saying he expects them to ride along for the long term. Still, Bailey emphasized that those unwilling to accept volatility should leave now.
Kindly MD has positioned itself at the crossroads of healthcare and Bitcoin. The merger with Nakamoto Holdings turned it into a company with a dual identity, one rooted in medicine and another aimed at building Bitcoin financial services. Bailey says the focus is on creating an institution aligned with Bitcoin’s future. Investors remain divided. Some see the discount between market cap and Bitcoin holdings as a chance, while others fear the risks of volatility, Nasdaq rules, and the challenges of combining healthcare with a Bitcoin treasury strategy.
For now, Kindly MD sits in a fragile spot. The share price has fallen sharply, trading volume has spiked, and the company’s identity is shifting. The balance between healthcare operations and Bitcoin investments will determine whether NAKA can recover and if Bailey’s plan to build a Bitcoin-native financial institution succeeds.
