KindlyMD shares drop after $5 billion stock sale program filing
KindlyMD filed with the U.S. Securities and Exchange Commission (SEC) on August 26 to sell up to $5 billion of common stock through an at-the-market program. The company plans to use proceeds for Bitcoin purchases and general corporate purposes.
The Nasdaq-listed stock closed down 12% on Tuesday and fell further in after-hours trading following the announcement. KindlyMD trades under the ticker NAKA.
The healthcare company completed its merger with Nakamoto Holdings earlier in August and adopted a Bitcoin treasury strategy. The filing establishes a shelf registration that allows KindlyMD to sell shares over time on Nasdaq at current market prices through agents, including TD Securities and Cantor.
KindlyMD purchased 5,744 BTC for approximately $679 million on August 19. The company paid a weighted average price of $118,204 per coin for the purchase.
CEO David Bailey said on X that building the necessary liquidity for the program will take time but called it "a critical tool" for executing the company's strategy. He stated the firm aims to be "world-class at transparency and governance."
The Form S-3 filing with a prospectus supplement dated August 26 enables share sales through multiple broker-dealers. The document lists working capital, acquisitions, and capital expenditures alongside Bitcoin purchases as potential uses for the raised funds.
Despite the decline, NAKA shares remain significantly higher since May, when the company first announced its Bitcoin strategy. The stock has gained substantial value over this period as the market responded to the firm's treasury plans.
The at-the-market program gives KindlyMD flexibility to raise capital on U.S. exchanges while building its Bitcoin holdings. The company operates as a healthcare services provider that has now integrated cryptocurrency treasury management into its business model.
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