KindlyMD Files $5B Equity for Bitcoin Treasury, Shares Slump
KindlyMD, listed on Nasdaq as NAKA, filed an SEC registration for a $5 billion at-the-market equity offering to fund its corporate Bitcoin treasury strategy. The firm recently merged with Nakamoto Holdings and purchased 5,744 BTC (approximately $679 million) at a weighted average price of $118,204 per BTC. Proceeds from the offering will support ongoing BTC accumulation, working capital, acquisitions and capital expenditures. Despite a 550% year-to-date gain, shares fell about 12% on the filing day and dropped a further 2.7% in after-hours trading, settling at $7.85. CEO David Bailey emphasized transparency, governance and the need to build market liquidity through multiple sales agents. The move follows a broader trend of corporates expanding Bitcoin treasury plans via equity offerings and ETF exposure. Traders should watch SEC filings, BTC accumulation pace and share dilution as key factors influencing market reactions and stock volatility.
Neutral
The $5 billion at-the-market offering signals both aggressive BTC accumulation and potential shareholder dilution. The immediate 12% stock drop reflects short-term bearish sentiment driven by dilution concerns. However, the strategic build-out of a corporate Bitcoin treasury mirrors past moves by firms like MicroStrategy, which saw long-term gains after initial share-funded BTC buys. Traders may see heightened volatility: short-term pressure from equity sales against the upside of sustained BTC exposure over time. Overall, the balance of dilution risk and corporate treasury growth suggests a neutral market impact.