KindlyMD’s NAKA shares slumped to $1.28 on Sept. 15, down by 54% in the past 24 hours and over 90% over one month.
KindlyMD disclosed its first purchase of approximately 5,744 BTC valued at $635 million earlier this month.
The stock peaked above $15 in late August before beginning a precipitous decline that accelerated throughout September.
The company’s shelf registration filing with the Securities and Exchange Commission allows gradual share issuance at prevailing market prices, creating substantial dilution concerns among investors.
The report measured supply-demand imbalances through “mNAV” ratios comparing market capitalizations to underlying crypto asset values.
According to Grayscale, mNAV ratios for major DAT companies have converged toward 1.0, indicating a balance between supply and demand rather than the premium valuations these vehicles previously commanded.
The result suggests investors no longer pay premiums for crypto exposure through public equity instruments. Despite apparent exhaustion regarding Bitcoin treasury companies, altcoin DATs continue to emerge.
The massive equity raise necessary to fund Bitcoin acquisitions dilutes existing shareholders significantly while providing no operational cash flow improvements for KindlyMD.
Bitcoin’s recent price uncertainty compounds these concerns, as the company’s market value becomes directly tied to BTC’s performance rather than underlying business fundamentals.
“Bitcoin treasury company NAKA is down more than 50% TODAY as insiders dump, and more than 90% since ATH.”
