Bitcoin-Focused KindlyMD Stock Plunges 55% After CEO's Call

KindlyMD's Stock Plunges Amid CEO's Call for Shareholder Exit and Bold Bitcoin Strategy KindlyMD, a healthcare firm that recently pivoted to integrate a significant Bitcoin treasury strategy, experienced a dramatic stock price decline exceeding 55% in a single day. This sharp downturn was precipitated by an unusual direct communication from CEO David Bailey, who explicitly urged short-term investors to divest their holdings. The incident highlights the inherent volatility and strategic complexities confronting companies that blend traditional business models with substantial exposure to digital assets, particularly as they navigate significant capital raises. Between September 15 and 16, 2025, KindlyMD's shares, trading under the ticker NAKA, plunged 55.4% on Nasdaq, according to TradingView data. This sell-off was accompanied by an unprecedented surge in trading volume, with over 108 million shares exchanged in 24 hours, far exceeding the three-month daily average of 3.25 million shares. The immediate catalyst was Bailey's letter to shareholders, which followed the company's September 12 filing with the U.S. Securities and Exchange Commission (SEC) for a private placement (PIPE) seeking to raise up to $5 billion. Such a substantial capital injection, particularly through a private placement, often raises concerns among existing shareholders regarding potential dilution of their equity, contributing to downward pressure on stock prices. The strategic shift at KindlyMD dates back to May 2025, when the American healthcare company announced its merger with Nakamoto Holdings. This entity was founded by David Bailey, notably an advisor to President Donald Trump. Post-merger, KindlyMD maintained its core healthcare operations while embarking on an ambitious plan to invest heavily in Bitcoin for its corporate treasury. The company subsequently changed its stock ticker to NAKA, effectively establishing Bailey's vision for a digital asset-focused enterprise on the public markets, with him as CEO. This dual strategy positions KindlyMD at the forefront of a nascent trend where traditional companies seek to leverage digital assets within their broader financial frameworks.

CEO's Strategic Vision Amid Volatility

In his communication, CEO Bailey acknowledged the significant volatility evident in NAKA's price chart since the adoption of its new business strategy. He stated that the entire sector of companies managing digital asset treasuries (DATs) has faced "severe challenges." Despite this, Bailey expressed conviction in the long-term success of the strategy, arguing that DATs offer a simplified and accessible avenue for exposure to Bitcoin, mitigating the complexities of direct investment in the asset. He framed the recent downturn and the upcoming influx of shares from the private placement as an opportunity to cultivate a stable, long-term shareholder base committed to the company's vision, explicitly advising those seeking "short-term speculation" to exit. This perspective stands in contrast to warnings from some market analysts, including those from Coinbase, who previously suggested that the era of substantial profits from the DAT sector might be waning. KindlyMD's commitment to its Bitcoin treasury strategy is underscored by its current holdings of 5,700 BTC. This volume places the company 15th in the ranking of public companies holding Bitcoin, according to Bitbo data. The decision by a healthcare firm to amass such a significant digital asset treasury carries substantial implications. It reflects a growing corporate interest in Bitcoin as a potential hedge against inflation, an alternative store of value, or a strategic asset, even for companies outside the technology or finance sectors. However, it also exposes the company to the inherent price fluctuations of cryptocurrencies, introducing a new layer of financial risk and potentially impacting shareholder perception and valuation models.