17 Dec
17Dec

KindlyMD Inc. (NAKA), a healthcare company that recently pivoted to a Bitcoin-focused treasury strategy, is under pressure after receiving a deficiency notice from Nasdaq. The exchange warned the company that it is no longer in compliance with the minimum $1.00 bid price requirement, as its stock has closed below that threshold for 30 consecutive business days.

Compliance Timeline and Recovery Options

The notice does not result in an immediate delisting. KindlyMD has been granted 180 days, or until June 8, 2026, to bring its share price back above $1.00 for at least 10 consecutive trading days. If the company fails to meet this requirement, it may explore options such as:

  • Transferring its listing to the Nasdaq Capital Market.
  • Executing a reverse stock split to artificially boost the share price.

Currently, NAKA shares are trading around $0.38, representing a 30% decline over the past month.

The Cost of a Crypto Transformation

The company’s current instability follows a major structural shift in May, when it merged with Nakamoto to adopt Bitcoin as its primary treasury asset. To fund this transition, KindlyMD raised $700 million through debt and private placements.

However, the timing of its largest purchase proved costly. In August, the firm bought 5,764 Bitcoin at an average price exceeding $118,000 per coin. With Bitcoin currently trading near $87,000, KindlyMD’s holdings are "underwater," sitting on an unrealized loss of approximately $176 million (a 26% drop).

Financial Disconnect and Market Trends

The company's pivot has created a significant gap between its operational revenue and its expenses:

  • Q3 Revenue: Only $0.4 million from healthcare services.
  • Q3 Expenses: $10.8 million, largely due to merger and crypto-strategy costs.
  • Net Loss: $86 million for the quarter.

While other firms like MicroStrategy face different pressures (such as index eligibility), KindlyMD’s struggle highlights a cooling market for "Bitcoin treasury" stocks. Data suggests that investor inflows into these types of companies hit a yearly low in November, as concerns grow over high leverage and the dilution of shares to fund digital asset purchases.

December 2025, Cryptoniteuae

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