Healthcare Firm Pushes Forward with Bold Bitcoin Treasury Strategy
KindlyMD shares declined sharply on Tuesday after the healthcare company announced a $5 billion at-the-market equity offering to fund its Bitcoin accumulation strategy. The move underscores a growing trend of corporate adoption of digital assets, but it also raises investor concerns about dilution and long-term risk.
NAKA falls 12%$5 Billion Plan to Strengthen Bitcoin Position
The company, which recently merged with Nakamoto Holdings, confirmed that the new equity program aims to support its Bitcoin-focused treasury strategy as well as fund other corporate initiatives. In its filing with the U.S. Securities and Exchange Commission (SEC), KindlyMD stated the proceeds would be used for “general corporate purposes,” including working capital, acquisitions, and capital expenditures.
“Following the successful completion of our merger and our initial purchase of Bitcoin, this initiative is the natural next phase of our growth plan,” said CEO David Bailey, who also serves as a crypto policy adviser to the Trump administration.
The company disclosed that it had already acquired 5,744 BTC worth approximately $679 million at a weighted average price of $118,204 per coin earlier this month.
Transparency and Long-Term Vision
When asked about comparisons to other Bitcoin-centric firms, Bailey emphasized governance and disclosure.
“We want to be world-class at transparency and governance,” Bailey noted, adding that improvements will be rolled out over the coming year.
Market Reaction and Stock Performance
Despite the company’s ambitious strategy, investors reacted negatively to the offering announcement, sending shares down 12% on Tuesday, followed by an additional 2.7% decline after-hours to $7.85. The concern centers on potential dilution and execution risk.
However, the stock remains up 330% since early May and 550% year-to-date, driven by the firm’s pivot toward Bitcoin and strong investor enthusiasm for crypto-focused corporations.
Industry experts suggest that the move signals deeper institutional confidence in Bitcoin, even amid volatility.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.