Shares in the healthcare firm KindlyMD fell on Tuesday after it revealed a $5 billion at-the-market equity offering program aimed at boosting its Bitcoin holdings.
The healthcare services provider, which recently merged with Nakamoto Holdings and adopted a Bitcoin (BTC) treasury strategy, announced on Tuesday that it had filed with the Securities and Exchange Commission to issue and sell up to $5 billion in common stock through this initiative.
The proceeds will be allocated to general corporate purposes, including BTC acquisition, working capital, acquisitions, capital expenditures, and investment in various projects.
“Following the successful conclusion of our merger between KindlyMD and Nakamoto just two weeks ago and our initial Bitcoin purchase, this initiative is a natural progression in our growth plan,” said KindlyMD chair and CEO David Bailey, who also serves as a crypto policy adviser to the Trump administration.
The company purchased 5,744 BTC for approximately $679 million, at a weighted average price of $118,204 per Bitcoin, on August 19.
Offering pivotal for Bitcoin strategy, CEO states
“Building the necessary liquidity to execute the program will take some time, but this will be an essential component of our strategy execution,” Bailey stated on X.
When questioned about the transparency of this strategy in comparison to Michael Saylor’s approach, Bailey replied:
“We aim to excel in transparency and governance; while we have immediate priorities, we will significantly enhance this aspect over the coming year.”
Related: Bitcoin bear market is likely years away: Trump adviser David Bailey
The stock sales will be managed through several sales agents, including TD Securities, Cantor, and others, with shares sold at current market rates on exchanges such as Nasdaq.
KindlyMD shares decline
Investors reacted negatively to the prospect of an equity offering, leading to a decline in KindlyMD’s shares (NAKA), which fell 12% on Tuesday, and dropped an additional 2.7% in after-hours trading to $7.85.
Nonetheless, KindlyMD’s stock has soared by 330% since early May, around when it announced its Bitcoin strategy, and has increased by 550% year-to-date.
Red Light Holland revises Bitcoin strategy
Meanwhile, Canada-based psychedelic truffle farming company Red Light Holland has updated its Bitcoin investment strategy.
The firm announced on Tuesday that it purchased 10,600 shares of the BlackRock iShares Bitcoin Trust ETF (IBIT) and is collaborating with “a leading exchange” to implement Arch Public’s algorithmic trading strategies.
Scott Melker, a crypto influencer and lead crypto adviser to Red Light Holland, remarked that the firm is “adopting a balanced and responsible approach to Bitcoin, integrating ETF exposure with advanced trading strategies via Arch Public.”
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