KindlyMD’s Bitcoin Strategy Under Pressure After Nasdaq Delisting Warning
KindlyMD Inc., a healthcare company that reinvented itself this year as a Bitcoin treasury-focused public firm, is facing the risk of being delisted from the Nasdaq after its share price remained below the exchange’s minimum bid requirement for an extended period.
In a Form 8-K filing dated Dec. 12, the company disclosed that it received a notice from Nasdaq’s Listing Qualifications Department after its common stock closed below $1 for 30 consecutive trading days, placing it out of compliance with Nasdaq Listing Rule 5450(a)(1).
While the notice does not trigger an immediate delisting, it begins a formal compliance process that could determine the stock’s future on the exchange.
Shares of KindlyMD, which trade under the ticker NAKA, were last priced at $0.38. The stock is down nearly 19% on the weekly time frame, and has fallen more than 30% over the past month.
KindlyMD share price (Source: Google Finance)
June 2026 Deadline to Regain Compliance
Under Nasdaq rules, KindlyMD has 180 calendar days, or until June 8, 2026, to regain compliance by maintaining a closing bid price of at least $1 for a minimum of 10 consecutive trading days.
The company said the notice has no immediate impact on its Nasdaq Global Market listing and that its shares will continue trading during the compliance period. If the company fails to regain compliance, it may seek to transfer to the Nasdaq Capital Market or pursue a reverse stock split. However, KindlyMD cautioned that there is no guarantee either option would be approved or successful.
From Healthcare Operator to Bitcoin Treasury Bet
The compliance warning marks a sharp reversal from the optimism that surrounded KindlyMD’s Bitcoin strategy earlier this year. In May, the company merged with Nakamoto, a Bitcoin-focused public entity, in one of the first prominent cases of a healthcare firm formally adopting Bitcoin as a core treasury asset.
Following the merger, the combined entity retained the KindlyMD name, with Nakamoto operating as a wholly owned subsidiary. To fund its Bitcoin purchases, the company raised more than $700 million through a combination of private placements and convertible debt.
That strategy intensified in August, when KindlyMD acquired 5,764 Bitcoin in a single transaction, spending approximately $679 million at an average price above $118,000 per coin.
Bitcoin Holdings Underwater as Market Shifts
According to Bitcoin Treasuries data, KindlyMD now holds Bitcoin valued at about $470.37 million, placing it roughly 19th among public Bitcoin treasury holders. At current prices, the position carries an unrealized loss of approximately $176 million, or about 26%.
KindlyMD BTC holdings (Source: Bitcoin Treasuries)
Bitcoin itself is trading near $87,000, up modestly on the week. However, the equity performance of companies holding large crypto treasuries has increasingly lagged behind the underlying assets, reflecting investor concerns over leverage, dilution, and earnings volatility.
Financial Strain Shows in Quarterly Results
KindlyMD’s financial filings illustrate the strain of its rapid transformation. In its third-quarter report, the company generated just $0.4 million in revenue from its healthcare operations, while operating expenses climbed to $10.8 million. Much of the increase was tied to costs associated with the Nakamoto merger and the company’s Bitcoin-focused strategy.
The company reported a net loss of $86 million for the quarter, including non-cash charges related to the merger and unrealized digital asset losses.
Not All Bitcoin Treasury Plays Face the Same Risks
KindlyMD’s situation differs from that of Strategy Inc., formerly MicroStrategy, which is facing uncertainty tied to index eligibility rather than exchange listing rules. In October, MSCI began reviewing its index methodology, triggering a sharp sell-off in MSTR shares.
While Strategy later stabilized after retaining its Nasdaq 100 position, the risk remains. A potential removal from MSCI indices could trigger billions of dollars in forced selling by passive funds, with MSCI expected to issue a final decision in January 2026.
Cooling Appetite for Digital Asset Treasury Stocks
Across the broader market, investor appetite for digital asset treasury stocks appears to be cooling. Data from DefiLlama shows that inflows into digital asset treasury stocks totaled just $1.32 billion in November, the lowest monthly figure of the year, signaling waning enthusiasm as volatility and regulatory uncertainty persist.
For KindlyMD, the months ahead will be critical in determining whether its Bitcoin-driven transformation can regain investor confidence—or whether the risks of the strategy will continue to weigh on its standing in public markets.
