KindlyMD (NAKA), a healthcare company that built a significant Bitcoin treasury, has received a formal delisting warning from the Nasdaq exchange. The notice was triggered after the company's stock price remained below the critical $1 threshold for 30 consecutive business days. As of Monday, December 16, NAKA stock closed at $0.38, marking a 4.97% single-day drop and a staggering 75% decline year-to-date.
The company, which holds 5,398 Bitcoin (worth approximately $466 million) and ranks as the 19th largest corporate Bitcoin holder, now faces a compliance deadline of June 8, 2026. To avoid delisting, KindlyMD must achieve a closing stock price at or above $1 for at least 10 consecutive trading days before that date. The stock first dipped below $1 in late October, and its current price represents a steep discount to its net asset value, trading at just 81.7% of its modified net asset value (mNAV).
This situation stems from KindlyMD's merger with David Bailey's Bitcoin treasury company, Nakamoto, in August. The deal was structured as a reverse takeover, with KindlyMD retaining its name but adopting the NAKA ticker. While the stock surged to record highs when the merger was announced in May, it has since plummeted by 99% amid a broader bear market and significant volatility in Bitcoin's price.
KindlyMD has several potential avenues to regain compliance, including requesting an extension, executing a reverse stock split, or seeking a transfer to the Nasdaq Capital Market. However, the event highlights the heightened scrutiny and challenges faced by publicly-listed companies with large cryptocurrency holdings, especially during market downturns. The news coincides with a 4% drop in Bitcoin's price to around $87,165, with analysts noting increased sell pressure and thinning liquidity.
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