Nasdaq warning flag raised, KindlyMD's Bitcoin dream shattered

KindlyMD Inc. (Stock Code: NAKA) is facing a life-and-death test. This publicly traded company, originally engaged in healthcare business, shifted to Bitcoin treasury investments this year, only to be met with a harsh market reality—Nasdaq has officially issued a delisting warning.

Stock Price Falls Below Warning Line, Compliance Deadline Approaching

According to the latest disclosure in KindlyMD’s 8-K form, the company received a notice from Nasdaq’s Listing Qualifications Department on December 12. The notice states that its common stock has closed below $1 for 30 consecutive trading days, triggering the Nasdaq Listing Rule 5450(a)(1) delisting warning mechanism.

Currently, NAKA’s stock price has fallen to $0.38, down nearly 19% this week, with a cumulative decline of over 30% in the past month. Under Nasdaq rules, KindlyMD has a 180-calendar-day compliance period, with a deadline of June 8, 2026. During this period, if the company can maintain a closing price of at least $1 for 10 consecutive trading days, it can regain its listing eligibility. If ultimately unsuccessful, the company may transfer to Nasdaq Capital Market or undergo a reverse stock split, but the official emphasizes that neither option is guaranteed.

Ambitions from Healthcare to Bitcoin Clash with Reality

KindlyMD’s transformation began in May with a merger with Nakamoto, a publicly traded company focused on Bitcoin. This merger was once seen as an innovative move for traditional industries crossing into the digital asset space. Post-merger, the entity retained the KindlyMD name, with Nakamoto operating as a wholly owned subsidiary.

To support this strategic shift, the company raised over $700 million through private placements, public offerings, and convertible bonds. In August, KindlyMD made a large purchase of 5,764 Bitcoins, spending about $679 million, with an average price exceeding $118,000 per Bitcoin at the time.

However, market reality is brutal. According to the latest data, Bitcoin’s current trading price is $92.21K, while KindlyMD’s average purchase price was as high as $118,000. Based on current market prices, the company’s Bitcoin holdings worth approximately $470.37 million are experiencing an unrealized loss of about $176 million, a loss of 26%. Among publicly held Bitcoin treasury institutions, KindlyMD ranks around 19th.

Financial Deterioration Further Damages Market Confidence

Q3 financial data reflect the company’s true predicament. Its healthcare revenue was only $400,000, while operating expenses soared to $10.8 million. The quarter’s net loss reached $86 million, including non-cash expenses related to mergers and unrealized losses on digital assets.

Crypto treasury stocks generally face a “discount” dilemma, as investor concerns over leverage, equity dilution, and profit volatility cause these stocks to lag behind the underlying assets’ performance.

Not All Bitcoin Treasury Investments Face the Same Fate

In contrast, Strategy Inc. (formerly MicroStrategy, Stock Code: MSTR), although also holding large amounts of Bitcoin, faces different risks. MSTR’s main concern is the MSCI index inclusion review, not exchange listing rules. The review initiated by MSCI in October caused a significant sell-off of MSTR stock, with a final decision expected in January 2026. If removed from the index, it could trigger forced sales of billions of dollars in passive fund holdings.

Market Enthusiasm Diminishes, Sounding Alarm

On a broader level, the investment enthusiasm for digital asset treasuries is waning. In November, the total inflow into digital asset treasuries was only $1.32 billion, hitting a new low for the year, reflecting a cooling market participation amid ongoing volatility and regulatory uncertainty.

For KindlyMD, the next 180 days are critical. The coming months will determine whether this Bitcoin-driven corporate transformation can restore investor confidence or whether the risks associated with this strategy will continue to erode its presence in the public markets.