KindlyMD announced a $5 billion stock issuance to expand Bitcoin holdings, with the stock price falling over 12%.

Healthcare company KindlyMD (NASDAQ: NAKA) saw its stock price fall significantly on August 26, as the company announced a fundraising plan through a market stock issuance of up to $5 billion to expand its Bitcoin (BTC) holdings. While this move is the next step in its encryption asset strategy, the market's reaction to the large-scale issuance was clearly negative, resulting in a single-day stock price drop of over 12%.

5 billion USD stock issuance: Bitcoin strategic upgrade

KindlyMD recently completed a merger with Satoshi Nakamoto Holdings and officially adopted a Bitcoin financial strategy. The company submitted an application to the U.S. Securities and Exchange Commission (SEC) on Tuesday, planning to sell common stock at market price through multiple sales agents (including TD Securities, Cantor, etc.) on exchanges such as NASDAQ to raise funds for:

1. Expand BTC holdings

2. Operating Capital and Capital Expenditure

3. Acquisition and Project Investment

David Bailey, Chairman and CEO of KindlyMD, stated that this is the "natural next step" following the completion of the merger and the initial purchase of Bitcoin two weeks ago. On August 19, the company acquired 5,744 BTC for $679 million, at an average price of $118,204 per coin.

Bailey emphasized that the program will become a key tool for executing the Bitcoin strategy and promised to achieve "world-class standards" in transparency and governance.

Stock price reaction: The increase has retracted, but it is still up 550% for the year

(Source: Google)

After the announcement, KindlyMD's stock price fell by 12% to $8.07 on Tuesday, and dropped another 2.7% to $7.85 in after-hours trading.

Nevertheless, since the public announcement of the Bitcoin strategy in early May, the stock has accumulated a rise of 330%, with an increase of up to 550% year-to-date, indicating that the market still has expectations for its long-term prospects in the encryption asset layout.

Bitcoin Investment Wave: Red Light Holland Follows Up

In addition to KindlyMD, the Canadian psychedelic truffle cultivation company Red Light Holland also updated its Bitcoin investment strategy on Tuesday:

Purchase 10,600 shares of BlackRock iShares Bitcoin Trust ETF (IBIT)

Cooperating with "a leading exchange" to plan the use of Arch Public's algorithmic trading strategies.

The company's chief encryption advisor, Scott Melker, stated that a "balanced and responsible" Bitcoin investment approach will be adopted, combining ETF exposure with advanced trading strategies to enhance asset allocation efficiency.

Conclusion

KindlyMD's $5 billion stock issuance plan highlights the trend of more and more non-cryptocurrency industry companies incorporating Bitcoin into their core financial strategies. However, the pressure from large-scale issuance on stock prices is evident in the short term. As more companies, such as Red Light Holland, join the ranks of Bitcoin investment, the market will continue to watch whether these cross-border players can achieve long-term returns in the highly volatile cryptocurrency asset market. For more real-time quotes and industry analysis, please follow the official Gate platform.