KindlyMD's NAKA shares fell to $1.28 on September 15th, exceeding 54% in the last 24 hours and 90% in a month.
The Bitcoin (BTC) Treasury, converted to healthcare, faces pressure from stock dilution plans and broader investor fatigue on its digital asset financing strategy.
The medical company that NASDAQ traded to, after merged with Nakamoto in August, transformed into a Bitcoin financing company, and later announced plans to raise up to $5 billion through the market inventory program to expand its Bitcoin reserve.
KindlyMD disclosed its first purchase of approximately 5,744 BTC, worth $635 million earlier this month.
The stock peaked at over $15 in late August, then began a sharp decline that accelerated during September.
Our application for shelving registration with the Securities and Exchange Commission allows for staged share issues at general market prices, creating significant dilution concerns among investors.
DAT SATURN Signal
Grayscale's August report recorded an increased fatigue of investors with Digital Asset Treasury (DAT) companies, with Bitcoin Exchange Trade Products experiencing its first monthly net outflow since March, with $755 million redemption.
The report measured imbalances in supply and demand via the “MNAV” ratio, which compares market capitalization with underlying crypto assets.
According to Grayscale, the MNAV ratio for major DAT companies has converged to 1.0, indicating the balance between supply and demand, rather than the premium ratings these vehicles ordered previously.
The results suggest that investors will not pay premiums for crypto exposure through public equity products. Despite the obvious fatigue with Bitcoin finance companies, Altcoin Dats continues to emerge.
altcoin reasuries
Recently, a new Digital Assets Treasury announcement for Solana, Chronos and other tokens has emerged. This shows sponsors will continue to fire the vehicle despite weakening of investors' appetite.
The large stock raises required to fund the Bitcoin acquisition do not provide an improvement in KindlyMD's operational cash flow while significantly diluting existing shareholders.
Bitcoin's recent price uncertainty attracts these concerns. The company's market value is directly linked to BTC's performance, not its fundamental business fundamentals.
However, Julio Moreno, the head of encrypted research, suggested that the Naka crash is not related to recent uncertainty in Bitcoin, but to insider activity.
He said:
“Bitcoin's Ministry of Finance's Naka has dropped by over 50% as a dump, and has dropped by over 90% since the ATH.”
Moreno reiterated that Dat Companies are just the latest enthusiasts at this stage of the cycle, as well as the emergence of Memecoin and the emergence of non-useable tokens (NFTs) in 2021.
