KindlyMD stock slides on $5B stock offering for Bitcoin buys

Shares in the Healthcare company KindlyMD dropped on Tuesday after it announced a $5 billion at-the-market equity offering program to raise funds to expand its Bitcoin holdings. 

The healthcare services company, which recently merged with Nakamoto Holdings and adopted a Bitcoin (BTC) treasury strategy, said on Tuesday that it filed with the Securities and Exchange Commission to issue and sell up to $5 billion worth of common stock through its program.

The company plans to use proceeds for general corporate purposes, including BTC accumulation, working capital, acquisitions, capital expenditures, and investments in projects.

“Following the successful completion of our merger between KindlyMD and Nakamoto just two weeks ago and our initial purchase of Bitcoin, this initiative is the natural next phase of our growth plan,” said KindlyMD chair and CEO David Bailey, who is also a crypto policy adviser to the Trump administration.

The company had acquired 5,744 BTC for around $679 million at a weighted average price of $118,204 per Bitcoin, on August 19. 

Offering key to Bitcoin strategy, CEO says 

“It’ll take us a while to build the necessary liquidity to complete the program, but it’ll be a critical tool as we execute our strategy,” Baily said on X. 

When asked about the strategy’s transparency compared to that of Michael Saylor’s Strategy, Bailey said:

“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 sales will be conducted through multiple sales agents, including TD Securities, Cantor, and others, with shares sold at prevailing market prices on exchanges such as Nasdaq.

Kindly MD shares slump 

Investors shirked the prospect of an equity offering as shared in Kindly MD (NAKA) slumped on Tuesday, ending the day down 12% and dropping a further 2.7% after-hours to $7.85.

However, Kindly MD’s stock has surged 330% since early May, around the time that it made its Bitcoin strategy plans public, and is up 550% so far this year.

Red Light Holland updates Bitcoin strategy 

Meanwhile, the Canada-based psychedelic truffles farming company Red Light Holland has become the latest to update its Bitcoin investment strategy.

The firm said on Tuesday that it has purchased 10,600 shares of the BlackRock iShares Bitcoin Trust ETF (IBIT) and was working with “a leading exchange” to enable it to utilize Arch Public’s algorithmic trading strategies. 

Scott Melker, a crypto influencer and lead crypto adviser to Red Light Holland, said the firm is “taking a balanced and responsible approach to Bitcoin, combining ETF exposure with the next steps of advanced trading strategies via Arch Public.”