{"id":16073,"date":"2025-09-16T05:53:00","date_gmt":"2025-09-16T03:53:00","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=16073"},"modified":"2025-09-16T05:53:00","modified_gmt":"2025-09-16T03:53:00","slug":"kindlymd-shares-plunge-55-amid-ceos-caution-on-market-fluctuations","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2025\/09\/16\/kindlymd-shares-plunge-55-amid-ceos-caution-on-market-fluctuations\/","title":{"rendered":"KindlyMD Shares Plunge 55% Amid CEO’s Caution on Market Fluctuations"},"content":{"rendered":"

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Stocks in the healthcare-to-Bitcoin firm KindlyMD Inc. were cut in half on Monday as its CEO cautioned about an imminent rise in \u201cstock price fluctuations\u201d and advised short-term investors to divest if they are merely seeking to gain.<\/p>\n

\u201cWe anticipate that stock price fluctuations may escalate for a certain duration,\u201d David Bailey stated<\/a> in a letter to shareholders on Monday, referencing the company\u2019s regulatory filing<\/a> on Friday, which announced a $200 million discounted share offering to private investors.<\/p>\n

\u201cFor shareholders who are looking for a quick profit, I urge you to leave.\u201d<\/p><\/blockquote>\n

KindlyMD\u2019s transaction, termed a private investment in public equity (PIPE) offering, generated funds by providing its shares at a reduced rate and its filing on Friday permitted those investors to trade their shares without restriction.<\/p>\n

Analysts have expressed concerns<\/a> regarding the rise of so-called crypto treasury firms, as the valuation of the crypto assets held by several companies is beginning to exceed<\/a> their market valuations.<\/p>\n

KindlyMD stock slides 55% following shareholder letter<\/h2>\n

Investors seemingly heeded Bailey\u2019s suggestion<\/a> to divest, as shares in KindlyMD (NAKA<\/a>) concluded trading on Monday with a 55.4% loss at $1.24.<\/p>\n

The stock experienced only a minor increase after hours, rising by 4.8%.<\/p>\n

Shares in KindlyMD plummeted by over half on Monday following David Bailey\u2019s letter advising certain shareholders to exit. Source: <\/em>Google Finance<\/em><\/a><\/figcaption><\/figure>\n

This marks the lowest share price for KindlyMD since early February, well before it revealed intentions to acquire and retain Bitcoin<\/a> (BTC<\/a>) in the long term and merged with Bailey\u2019s investment firm, Nakamoto Holdings, the previous month.<\/p>\n

Bailey claims PIPE deal will eliminate non-aligned investors<\/h2>\n

Bailey mentioned in his letter that while the shares entering the market from the PIPE deal will amplify volatility, he views it \u201cas an essential opportunity for us to cultivate our base of dedicated shareholders who are invested in our long-term vision.\u201d<\/p>\n

\u201cThis transition might signify a time of uncertainty for investors, and we are eager to emerge on the other side with unity and conviction among our supporters,\u201d he continued.<\/p>\n

Related: <\/strong><\/em>Crypto treasury mNAVs plummet, only the resilient will endure \u2014 Standard Chartered<\/strong><\/em><\/a><\/p>\n

Bailey remarked<\/a> on X that KindlyMD shares had experienced \u201chigh trading volume,\u201d but characterized it as a \u201cday of transition\u201d where the company was \u201cupgrading our shareholder base from short-term traders to long-term investors.\u201d<\/p>\n

Source: <\/em>David Bailey<\/em><\/a><\/figcaption><\/figure>\n

\u201cNearly 80m [million] shares have changed hands today,\u201d he subsequently added<\/a>. \u201cOnce again I\u2019m grateful for the support and look forward to connecting with all our new shareholders!\u201d<\/p>\n

KindlyMD valuation dips below Bitcoin assets<\/h2>\n

KindlyMD\u2019s decline in share price has led its multiple of net asset value (mNAV) to decrease to 0.7 as the company\u2019s market valuation has fallen below that of its Bitcoin assets.<\/p>\n

The firm possesses 5,765 BTC with a total worth exceeding $665 million, while its market capitalization stands at $466 million, according to BitcoinTreasuries.NET data<\/a>.<\/p>\n

However, Bailey remained undaunted in his letter, asserting that KindlyMD\u2019s objective is to establish \u201cthe preeminent Bitcoin-native financial organization,\u201d a goal he added requires \u201ca long-term approach, innovative thinking, and disciplined yet agile execution.\u201d<\/p>\n

Magazine: <\/strong><\/em>Can Robinhood or Kraken\u2019s tokenized stocks ever achieve true decentralization?<\/strong><\/em><\/a><\/p>\n