KindlyMD shares plunged 55% after CEO David Bailey urged short-term investors to leave the company.
KindlyMD shares plunge 55%: Bailey urges weak investors to exit
Shares of KindlyMD Inc., a medical device company turned bitcoin vault, plunged 55% on Monday after CEO David Bailey warned of heightened volatility in a letter to shareholders. In the letter, he warned of “low conviction” traders to exit their positions.
The reason was the announcement of a $200 million PIPE deal, which allowed private investors to sell shares at a discount. “This is a critical opportunity to build a shareholder base that shares our long-term course,” Bailey explained.
Price Crash
KinlyMD (NAKA) shares closed at $1.24, their lowest since February, according to the exchange. This came despite the company having focused on a buy-and-hold Bitcoin strategy since July following its merger with Nakamoto Holdings.
Market Reacts
Trading volumes topped 80 million shares, and Bailey called the day a “transitional moment” for long-term investors. He stressed KindlyMD’s mission is to become “the leading Bitcoin financial institution.”
Value Below Bitcoin Reserves
Despite a market cap drop to $466 million, the company holds 5,765 BTC worth more than $665 million. This has reduced the net asset value (mNAV) multiplier to 0.7, meaning the shares are priced lower than Bitcoin reserves themselves.
At the same time, Micro Strategy continues to buy Bitcoin, and already holds over $73 Billion in Bitcoin on its balance sheet.
