KindlyMD announces $5B equity offering to buy more Bitcoin, shares tank
Utah-based publicly listed healthcare firm KindlyMD has announced a massive $5 billion at-the-market equity offering program to fund its Bitcoin treasury.
Just weeks after completing a historic merger with Nakamoto Holdings, KindlyMD is showing no signs of stopping and expects to funnel most of the new capital raised via its ambitious stock offering to buy more Bitcoin, according to a Tuesday announcement.
KindlyMD chairman and CEO David Bailey, who currently serves as a crypto policy advisor for the Trump administration, framed the offering as the next phase for the company’s growth plan.
“We intend to deploy the ATM Program thoughtfully and methodically, using it as a flexible tool to strengthen our balance sheet, seize market opportunities, and deliver accretive value for our shareholders,” Bailey said.
KindlyMD’s Bitcoin strategy
As of August 27, KindlyMD has bought 5,744 Bitcoin for roughly $679 million through its subsidiary Nakamoto Holdings.
The purchase was executed at a weighted average price of $118,204 per coin, marking the company’s first foray into crypto treasury management, and it did so in blockbuster fashion.
Subsequently, the company managed to secure its position among the top 20 global corporate Bitcoin holders.
This initial deployment followed the company’s $540 million PIPE raise as part of its merger with Nakamoto, a Bitcoin-native investment firm founded by David Bailey.
The merger cemented KindlyMD’s transformation from a telehealth services provider into a high-profile institutional player in the digital asset space.
As a part of its new agenda, KindlyMD plans to accumulate as many as one million BTC over the long term and position itself as a key player in the Bitcoin treasury market.
Now, the automatic shelf registration filed with the US Securities and Exchange Commission grants KindlyMD the status of a Well-Known Seasoned Issuer (WKSI), allowing it to issue securities more swiftly and with greater flexibility.
The equity program is structured to include not only common stock but also other financial instruments, with sales to be handled by a lineup of underwriters, including Cantor Fitzgerald, TD Securities, B. Riley Securities, and Canada’s Canaccord Genuity.
KindlyMD shares tank
Although company insiders are expecting that the latest move will eventually bring in long-term value, shareholder reaction has been less than euphoric.
Shares of KindlyMD, which trade under the ticker NAKA, slid 12% on Tuesday after the announcement and fell another 2.7% in after-hours trading to close at $7.85.
The sell-off reflected investor concerns around potential dilution and the speculative nature of allocating proceeds toward cryptocurrency rather than traditional growth sectors.
Despite that drop, KindlyMD stock remains up more than 550% since the beginning of the year, with a notable 330% surge since May.
The post KindlyMD announces $5B equity offering to buy more Bitcoin, shares tank appeared first on Invezz
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KindlyMD announces $5B equity offering to buy more Bitcoin, shares tank
Utah-based publicly listed healthcare firm KindlyMD has announced a massive $5 billion at-the-market equity offering program to fund its Bitcoin treasury.
Just weeks after completing a historic merger with Nakamoto Holdings, KindlyMD is showing no signs of stopping and expects to funnel most of the new capital raised via its ambitious stock offering to buy more Bitcoin, according to a Tuesday announcement.
KindlyMD chairman and CEO David Bailey, who currently serves as a crypto policy advisor for the Trump administration, framed the offering as the next phase for the company’s growth plan.
“We intend to deploy the ATM Program thoughtfully and methodically, using it as a flexible tool to strengthen our balance sheet, seize market opportunities, and deliver accretive value for our shareholders,” Bailey said.
KindlyMD’s Bitcoin strategy
As of August 27, KindlyMD has bought 5,744 Bitcoin for roughly $679 million through its subsidiary Nakamoto Holdings.
The purchase was executed at a weighted average price of $118,204 per coin, marking the company’s first foray into crypto treasury management, and it did so in blockbuster fashion.
Subsequently, the company managed to secure its position among the top 20 global corporate Bitcoin holders.
This initial deployment followed the company’s $540 million PIPE raise as part of its merger with Nakamoto, a Bitcoin-native investment firm founded by David Bailey.
The merger cemented KindlyMD’s transformation from a telehealth services provider into a high-profile institutional player in the digital asset space.
As a part of its new agenda, KindlyMD plans to accumulate as many as one million BTC over the long term and position itself as a key player in the Bitcoin treasury market.
Now, the automatic shelf registration filed with the US Securities and Exchange Commission grants KindlyMD the status of a Well-Known Seasoned Issuer (WKSI), allowing it to issue securities more swiftly and with greater flexibility.
The equity program is structured to include not only common stock but also other financial instruments, with sales to be handled by a lineup of underwriters, including Cantor Fitzgerald, TD Securities, B. Riley Securities, and Canada’s Canaccord Genuity.
KindlyMD shares tank
Although company insiders are expecting that the latest move will eventually bring in long-term value, shareholder reaction has been less than euphoric.
Shares of KindlyMD, which trade under the ticker NAKA, slid 12% on Tuesday after the announcement and fell another 2.7% in after-hours trading to close at $7.85.
The sell-off reflected investor concerns around potential dilution and the speculative nature of allocating proceeds toward cryptocurrency rather than traditional growth sectors.
Despite that drop, KindlyMD stock remains up more than 550% since the beginning of the year, with a notable 330% surge since May.
The post KindlyMD announces $5B equity offering to buy more Bitcoin, shares tank appeared first on Invezz
Read More
Mantra announces first $25M institutional-backed token buyback, OM soars 7%