On Monday, KindlyMD Inc., which was once focused on healthcare and has now transformed into a Bitcoin (BTC) holding company, saw its stock price halved. Its CEO warned that "stock price volatility will increase" and encouraged short-term investors seeking profit to consider selling.
"We expect stock price volatility may intensify for a period of time," David Bailey stated in a letter to shareholders on Monday. The company submitted regulatory documents on Friday, registering a $200 million directed discounted placement.
KindlyMD is raising funds through a private investment in public equity (PIPE) by selling shares at a discount. According to the documents submitted on Friday, investors participating in this transaction can freely buy and sell their shares.
Analysts have expressed concerns about the surge of so-called "crypto treasury companies," as the value of many companies' crypto assets has begun to exceed their market capitalization.
Investors seem to have taken Bailey's advice to exit, as KindlyMD (NAKA) closed down 55.4% on Monday, at $1.24.
After hours, KindlyMD's stock price rebounded slightly, rising 4.8%.
This marks the lowest point for KindlyMD's stock price since early February, prior to the company's announcement of a long-term buy-and-hold strategy for Bitcoin (BTC) and its merger with Bailey's holding company, Nakamoto Holdings, last month.
According to Bailey in the letter, while the shares released into the market from the PIPE transaction may exacerbate stock price volatility, he believes this "is a key opportunity for us to build a shareholder base that is aligned and committed to the company's long-term vision."
"This transition may create uncertainty for investors, and we hope to reach a consensus with supporters after navigating this phase," he added.
Bailey pointed out on the X platform that KindlyMD's stock has "extremely high trading volume," but he views it as "the day of transformation," as the company is "upgrading its shareholder group from short-term traders to long-term investors."
"Nearly 80 million shares were traded today," he added, "Thank you all for your support, and I look forward to meeting all the new shareholders!"
After the decline in KindlyMD's stock price, the net asset multiple (mNAV) dropped to 0.7, and the company's market capitalization has fallen below the value of its Bitcoin (BTC) holdings.
According to BitcoinTreasuries.NET, the company holds 5,765 Bitcoins (BTC), with a total value exceeding $665 million, while its market capitalization is $466 million.
Bailey reiterated in the letter that KindlyMD's mission is to create "a leading Bitcoin (BTC) native financial institution," adding that this requires "long-term strategy, innovative thinking, and disciplined yet flexible execution."
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Original article: “KindlyMD Stock Plummets 55%, Swing Traders Warned to ‘Exit Early’ Before Volatility”
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