📉 PRICING PARADOX: A COMPANY HOLDS $474M IN BITCOIN BUT HAS ONLY A $256M MARKET CAP, FACING DELISTING RISK
A cautionary case study for investors: KindlyMD (ticker: $NAKA), a Bitcoin treasury company, has just received a Nasdaq delisting warning after its share price collapsed sharply.
📌 Quick breakdown of the key “Red Flags” at KindlyMD:
- Severely poor price performance:
- $NAKA shares have lost nearly 99% from the peak of $34.77, now trading below $0.40. Prolonged trading under $1 violates Nasdaq’s minimum bid price requirement.
- Delisting risk:
The company has until June 2025 to regain a share price above $1 for at least 10 consecutive trading sessions. Failure to do so would likely result in removal from Nasdaq.
- Structural and operational issues:
Problems escalated after the September merger with Nakamoto. A large amount of previously locked-up shares became tradable, triggering massive selling pressure. CEO David Bailey even publicly encouraged short-term shareholders to exit their positions.
- Lack of transparency:
KindlyMD delayed its Q3 financial report, citing accounting complexity following the merger—raising serious concerns around governance and financial oversight.
❗️ The biggest paradox:
- According to disclosures, KindlyMD holds 5,398 BTC, worth - approximately $474 million.
- Yet the company’s market capitalization is only $256 million.
The firm’s Bitcoin holdings are worth almost 1.8× its entire market value, yet the stock is on the brink of delisting.
Is this a classic “value trap”, or a case of extreme mispricing?
