- KindlyMD Inc. stock dropped over 55% after the CEO warned of rising price volatility and encouraged short-term traders to leave.
- Heavy trading volume followed, with more than 80 million shares traded in one day.
- KindlyMD’s market value fell below its Bitcoin holdings, with the company holding over 5,765 Bitcoin valued at about $665 million.
- CEO David Bailey stated the firm is seeking to build a base of long-term shareholders committed to its Bitcoin-focused mission.
Shares of KindlyMD Inc. fell by more than half on Monday after CEO David Bailey warned in a shareholder letter that the company expects increased share price volatility. He advised short-term traders to exit if they are only looking to profit.
The company registered a $200 million discounted share sale, known as a PIPE (private investment in public equity) offering, in a recent regulatory filing. This sale lets private investors quickly resell their discounted shares on the open market.
Following Bailey’s comments, shares of KindlyMD (trading under NASDAQ: NAKA) closed down 55.4% at $1.24. After-hours trading saw only a slight recovery, with shares rising 4.8%. Bailey stated in his letter, “For those shareholders who have come looking for a trade, I encourage you to exit.” He also noted that the entry of PIPE deal shares would add volatility but called this period a chance to align the company’s shareholder base with long-term supporters.
On social media, Bailey described the trading day as a “day of transition.” He said the company was “upgrading our shareholder base from short-term traders to long-term investors,” and reported a single-day trading volume of nearly 80 million shares.
The drop lowered KindlyMD’s market capitalization to $466 million, below the value of its Bitcoin holdings, which stand at 5,765 BTC (about $665 million). According to Bailey, KindlyMD’s aim is to become “the leading Bitcoin-native financial institution,” a goal he said requires a long-term approach and committed investors.
For more company details, see the official shareholder letter and the regulatory filing. Additional company metrics can be found on BitcoinTreasuries.NET.
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