tl;dr
KindlyMD’s NAKA shares fell 54% in 24 hours and 90% over a month, driven by equity dilution, investor fatigue, and shifting digital asset treasury (DAT) market dynamics. The company, which pivoted from healthcare to Bitcoin treasury, faced scrutiny over its SEC-registered stock program, which allows...
**KindlyMD’s NAKA Shares Plummet 54% in 24 Hours: The Bitcoin Treasury Bubble Bursts?**
In a dramatic twist, KindlyMD’s NAKA shares crashed to $1.28 on September 15, marking a 54% plunge in 24 hours and a staggering 90% decline over the past month. The healthcare-turned-Bitcoin treasury company, once a darling of the crypto market, now finds itself at the center of a storm fueled by equity dilution, investor fatigue, and a shifting landscape for digital asset treasury (DAT) strategies.
**From Healthcare to Bitcoin: A High-Risk Pivot**
KindlyMD’s journey began as a Nasdaq-listed medical firm, but its narrative shifted dramatically in August when it merged with Nakamoto, a Bitcoin-focused entity. The move was bold: the company announced plans to raise up to $5 billion via an at-the-market stock program to expand its Bitcoin reserves. Earlier this month, it bought 5,744 BTC, worth $635 million, cementing its identity as a Bitcoin treasury play.
Yet the stock’s peak of $15 in late August feels like a distant memory. Since then, it’s been a free fall, driven by a perfect storm of factors. The company’s shelf registration with the SEC allows it to issue shares gradually at prevailing prices—a strategy that has alarmed investors. Each new share issued dilutes existing holdings, eroding value without delivering operational improvements.
**The DAT Dilemma: When Premiums Fade**
Grayscale’s August report laid bare the growing unease around DATs. For the first time since March, Bitcoin ETFs saw net outflows, with $755 million in redemptions. The firm’s “mNAV” metric—comparing market caps to underlying crypto values—showed ratios converging toward 1.0, signaling a balance between supply and demand. No more premiums. No more hype.
This shift underscores a critical truth: investors are no longer willing to pay extra for crypto exposure through public equities. Yet despite this, altcoin DATs continue to emerge, as if the market hasn’t learned its lesson.
**The Double-Edged Sword of Bitcoin Exposure**
KindlyMD’s fate is now inextricably tied to Bitcoin’s price, which has been anything but stable. While some see this as a risk, others argue it’s a bet on the long-term potential of digital assets. But here’s the catch: the company’s equity raise to fund Bitcoin purchases doesn’t generate operational cash flow. It’s a pure play on crypto prices, leaving shareholders vulnerable to volatility.
CryptoQuant’s Julio Moreno points to another factor: insider selling. “NAKA is down more than 50% today as insiders dump, and more than 90% since ATH,” he said, suggesting the crash may be less about Bitcoin’s performance and more about liquidity needs among executives.
**A Cycle Repeats: From Memecoins to NFTs to DATs**
Moreno likened the DAT boom to previous crypto manias, like the memecoin frenzy and the NFT craze of 2021. “They’re just the latest phase of this cycle,” he said. The pattern is familiar: speculative fervor, inflated valuations, and eventual correction.
For investors, the lesson is clear: not all crypto-linked plays are created equal. While Bitcoin’s future remains uncertain, the road to profitability for DATs is fraught with challenges.
**What’s Next for KindlyMD?**
As NAKA’s shares tumble, the question isn’t just about Bitcoin’s price—it’s about whether the market will ever trust DATs again. For now, the story of KindlyMD serves as a cautionary tale: even the most innovative strategies can fall victim to market cycles, dilution risks, and the ever-shifting tides of investor sentiment.
So, what’s your take? Is this the end of the road for Bitcoin treasury companies, or a temporary setback in a longer journey? Let’s hear your thoughts.