KindlyMD, a healthcare services firm listed on Nasdaq, has revealed intentions to raise up to $5 billion through an at-the-market equity offering program (ATM program) submitted to the US Securities and Exchange Commission (SEC).
The company will issue and sell shares of its common stock under this initiative, providing the flexibility to secure funds over time.
Bitcoin Treasury Strategy
In a recent blog post, KindlyMD stated that the funds will be utilized for various purposes, primarily to bolster its Bitcoin treasury strategy implemented after the merger with Nakamoto Holdings. Additionally, the proceeds may be directed towards working capital, acquisitions of businesses or technologies, capital expenditures, and investments in both existing operations and new ventures.
David Bailey, Chief Executive Officer and Chairman of KindlyMD, expressed that the introduction of the ATM Program represents a “pivotal step” in the Utah-based company’s long-term capital strategy and elaborated,
“Following the successful completion of our merger between KindlyMD and Nakamoto just two weeks ago and our initial acquisition of 5,744 Bitcoin, this initiative is the natural next phase of our growth strategy. We plan to deploy the ATM Program thoughtfully and methodically, utilizing it as a flexible tool to enhance our balance sheet, capitalize on market opportunities, and provide incremental value for our shareholders.”
On August 26, shares of the company dropped significantly, closing at $8.07, a decrease of 12% from the prior session’s close of $9.17. The stock traded lower throughout the day, declining from an early high near $9.5 and settling just above $7.9 before stabilizing later in the afternoon. In pre-market trading, shares fell another 2.11% to $7.90, indicating ongoing pressure.
Bitcoin Buying Persists in Weak Market
KindlyMD initiated its Bitcoin strategy this month following the merger with Nakamoto Holdings. This action aligns with plans announced in May to accumulate the cryptocurrency and increase per-share holdings, or “Bitcoin Yield,” through equity and debt offerings. Data from Bitcoin Treasuries indicated that it currently holds more BTC than companies like Semler Scientific and GameStop.
Numerous US-listed firms have consistently increased their BTC reserves this year – a trend now adopted by KindlyMD. This latest move comes as Bitcoin struggles near $110,000, down approximately 7% over the past month.
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