KindlyMD tanks 55% as CEO tells short-term investors to sell
Stock fell 55% after CEO David Bailey urged short-term traders to sell, following an SEC filing that cleared discounted shares for trading.
Shares in KindlyMD (NAKA) dropped to $1.24 at the close, down 55.4% as investors reacted to a shareholder letter from David Bailey and the company's SEC filing registering a $200 million private investment in public equity (PIPE).
Bailey wrote that the firm expects "share price volatility may increase for a period of time" and encouraged anyone "who have come looking for a trade" to exit. He announced the PIPE issuance will allow those investors to freely trade their shares.
Almost 80 million KindlyMD shares changed hands that day according to Bailey's social media posts. Trading volume spiked as the PIPE shares began entering the market.
KindlyMD holds 5,765 Bitcoin valued at more than $665 million. The company's market capitalization fell to about $466 million, leaving the firm trading at roughly 0.7 times its net asset value multiple.
Bailey described the transaction as an opportunity to "establish our base of aligned shareholders who are committed to our long-term vision." He called the day's activity a "day of transition" as the company shifts toward investors who share its long-term strategy.
The company completed a corporate reorganization earlier this year to prioritize holding Bitcoin after merging with Nakamoto Holdings. KindlyMD announced plans to buy and hold BTC for the long term as part of this restructuring.
The PIPE filing allowed private investors who purchased shares at a discount to sell them on the public market. Trading volumes for KindlyMD typically average under 5 million shares daily, making Monday's 80 million share volume an unusual spike. This increased the available float and produced the volatility Bailey warned shareholders about.
Bailey framed the heavy selling as necessary to flush out short-term investors from the shareholder base. The CEO has positioned KindlyMD as a Bitcoin treasury company focused on long-term value creation.
The $200 million PIPE represents a significant capital raise for the company. KindlyMD has not disclosed specific plans for deploying the proceeds beyond its stated Bitcoin accumulation strategy.
Author
Sebile Fane cut her teeth in blockchain by building tiny NFT experiments with friends in her living room, long before the buzzwords took hold. She’s driven by a curiosity for the human stories behind smart contracts — whether it’s a small-town artist minting her first token or a DAO voting on climate grants — and weaves technical insight with genuine empathy.
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