KindlyMD Plunges 12% On $5 Billion Plan To Become 3rd-Largest Corporate Bitcoin Holder

KindlyMD shares tumbled 12% after the healthcare service provider announced a $5 billion at-the-market (ATM) equity program aimed at expanding its Bitcoin holdings.

The move, following hard on the heels of its merger with Nakamoto Holdings earlier this month to become a BTC treasury firm, could propel KindlyMD into the top three corporate Bitcoin holders if the full raise is deployed to buy BTC.

KindlyMD disclosed in an Aug. 25 filing with the US Securities and Exchange Commission (SEC) its plan to issue and sell up to $5 billion worth of common stock through the new program at a par value of $0.001 per share.

A group of investment banks and brokers have been lined up as “Sales Agents” to allow the company to sell shares in a flexible way. They include TD Securities, Cantor, B. Riley Securities, Benchmark, Canaccord Genuity, Cohen & Company Capital Markets, Craig-Hallum, Needham & Company, and Yorkville Securities. 

KindlyMD said it intends to use the proceeds from the program for “general corporate purposes, which include, among other things, pursuit of a Bitcoin Treasury Strategy.” The proceeds will also be used for “working capital, capital expenditures, and/or investing in existing future projects.” 

Shares in the company plummeted after the announcement. Following a 12% drop in the latest trading session, the selling activity continued during the after-hours session, extending losses by more than 2%, according to data from Google Finance. 

KindlyMD share price (Source: Google Finance) 

Nakamoto CEO Says ATM Program Is “Natural Next Step” After Merger

Despite a 23% slump in the past 30 days, KindlyMD’s stock has surged 329% in the last six months.

The recent drop in its share price started after KindlyMD completed its merger with Nakamoto Holdings, whose CEO, David Bailey, is also a crypto adviser to the Donald Trump Administration. 

They executed their first Bitcoin purchase on Aug. 19 for 5,743.91 BTC worth about $679 million at a weighted average price of $118,204.88 per BTC. 

That, combined with the 21 BTC KindlyMD bought in May, ranks it as the 16th-largest BTC treasury firm globally, according to Bitcoin Treasuries, ranking it above Semler Scientific with its holdings of 5,021 BTC and below Next Technology Holding with its reserves of 6,894 BTC. 

Commenting on the $5 billion ATM program, Bailey said that the move is the “natural next step of our 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,” he added. 

KindlyMD Would Join The Top 3 Bitcoin Treasury Firms If It Uses Entire Raise For BTC Buys

Bitcoin trades at $111,359 as of 1:40 a.m. EST. If KindlyMD were to successfully raise the $5 billion and use the entire amount to buy BTC at its current price, its BTC holdings would increase by around 44,899 coins. 

That would rank the healthcare service provider as the second-biggest corporate Bitcoin holder with 50,664 BTC, provided none of the other companies purchase more of the crypto until then. 

It would rank above Bitcoin miner MARA Holdings with its 50,639 BTC reserves, and below current leader Strategy, which is led by Bitcoin Maxi Michael Saylor and currently holds 623,457 BTC on its balance sheets.  

Strategy started buying Bitcoin back in 2020, and has since achieved a more than 51% gain of over $23.9 billion through its BTC accumulation strategy, data from SaylorTracker shows.  

Strategy’s BTC accumulation plan and performance thus far has inspired a growing number of companies to look into debt financing to grow their own reserves around the crypto king.

As a result, 305 companies have invested in BTC after 17 new firms joined the trend in just the past week. Together, these entities hold 3.68 million BTC, a more than 2% increase in the last month. 

Strategy’s stash alone accounts for 2.997% of Bitcoin’s 21 million supply, and is valued at more than $70.13 billion, according to BitBo.