KindlyMD (a.k.a., Nakamoto | NASDAQ: NAKA) fell more than 55% on September 15, plunging below the value of its bitcoin holdings. The tumble came after the SEC cleared the resale of previously restricted shares from early KindlyMD/Nakamoto PIPE financings.
At the time of writing, the company’s market cap ($573 million) is roughly $100 million less than the value of its 5,765 BTC ($671 million) holding, marking a significant discount to its bitcoin per share.
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NAKA’s selloff followed SEC approval that registered PIPE investors to sell their shares into the open market. Those investors include subscribers to a $51.5 million PIPE priced at $5.00 per share completed in June, alongside a much larger $511.7 initial PIPE struck at $1.12 per share agreed in May.
On August 15, the company closed a $200 million senior secured convertible note with an initial conversion price of $2.80 per share. Four days later, on August 19, it executed its first post-merger purchase, 5,743.91 BTC for approximately $679 million. On August 26, it put a $5 billion at-the-market program in place.
NAKA’s market value has notably slipped below the value of its 5,765 BTC. The market cap at the September 15 market close was around $466.4 million, representing a 43% discount to its bitcoin holdings. Considering KindlyMD/Nakamoto’s $200 million convertible note, this puts the company’s current enterprise value at approximately the value of its bitcoin holdings.
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At time of publication, NAKA is up 4% during pre-market hours.
