Shares of healthcare firm KindlyMD fell on Tuesday after the company unveiled a $5 billion at-the-market equity offering aimed at bolstering its Bitcoin reserves.
KindlyMD, which recently merged with Nakamoto Holdings and adopted a Bitcoin treasury strategy, said it has filed with the Securities and Exchange Commission to sell up to $5 billion in common stock. Proceeds will go toward general corporate purposes, including Bitcoin accumulation, working capital, acquisitions, capital expenditures, and new investments.
“Following the successful completion of our merger between KindlyMD and Nakamoto just two weeks ago and our initial Bitcoin purchase, this initiative is the natural next phase of our growth plan,” said chair and CEO David Bailey, who also serves as a crypto policy adviser to the Trump administration.
On August 19, the company disclosed it had purchased 5,744 BTC for about $679 million at an average price of $118,204 per coin.
CEO: Stock offering pivotal to Bitcoin strategy
“It will take time to build the liquidity needed to fully carry out the program, but it remains a vital tool for executing our strategy,” Bailey said on X.
When asked how the company’s approach compares in transparency to Michael Saylor’s strategy, Bailey responded:
“We want to be world-class at transparency and governance, we have a lot of immediate items that must be prioritized but over the course of the year we will dramatically improve here.”
The stock offering will be executed through several sales agents, including TD Securities and Cantor, with shares to be sold at market prices on exchanges like Nasdaq.
KindlyMD stock sinks
Investors recoiled at the planned equity offering, sending shares of KindlyMD (NAKA) down 12% on Tuesday, with the stock sliding another 2.7% after hours to $7.85.
Despite the pullback, KindlyMD shares have soared 330% since early May—when the company first unveiled its Bitcoin strategy—and are up 550% year-to-date.
Red Light Holland revises Bitcoin strategy
Meanwhile, Canada-based psychedelic truffle producer Red Light Holland announced an update to its Bitcoin investment strategy.
The company revealed Tuesday that it has acquired 10,600 shares of BlackRock’s iShares Bitcoin Trust ETF (IBIT) and is collaborating with “a leading exchange” to implement Arch Public’s algorithmic trading strategies.
Scott Melker, a crypto influencer and Red Light Holland’s lead crypto adviser, said the firm is “taking a balanced and responsible approach to Bitcoin, combining ETF exposure with the next phase of advanced trading strategies through Arch Public.”
