Shares of KindlyMD, a healthcare company, saw a decline on Tuesday after announcing a $5 billion at-the-market equity offering program aimed at increasing its Bitcoin holdings.
Recently merged with Nakamoto Holdings, KindlyMD has adopted a Bitcoin (BTC) treasury strategy and announced that it filed with the Securities and Exchange Commission to issue and sell up to $5 billion in common stock through this initiative.
To support general corporate needs, the company plans to use the proceeds for BTC accumulation, working capital, acquisitions, capital expenditures, and project investments.
“Following our recent merger with Nakamoto and our initial Bitcoin purchase, this initiative is the next logical step in our growth strategy,” stated 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 vital to Bitcoin strategy, CEO asserts
“It will take time to establish the necessary liquidity to execute this program, but it will be an essential tool for our strategy,” Bailey stated on X.
When asked about his strategy’s transparency compared to Michael Saylor’s approach, Bailey remarked:
“We aim to excel in transparency and governance, and while there are immediate priorities, we will significantly enhance this area over the year.”
Related: Bitcoin bear market is likely years away: Trump adviser David Bailey
Share sales will be facilitated through various agents, including TD Securities and Cantor, with shares sold at prevailing market prices on exchanges like Nasdaq.
Decline in KindlyMD shares
On Tuesday, KindlyMD’s shares (NAKA) fell 12% due to investor apprehensions surrounding the equity offering, with an additional after-hours decline of 2.7%, bringing the price down to $7.85.
Despite this slump, KindlyMD’s stock has risen 330% since early May, coinciding with the announcement of its Bitcoin strategy, and it is up 550% for the year.
NAKA drops 12% for the day. Source: Google Finance
Red Light Holland revises Bitcoin strategy
Meanwhile, Canadian psychedelic truffle farming company Red Light Holland has updated its Bitcoin investment strategy.
The firm announced on Tuesday that it acquired 10,600 shares of the BlackRock iShares Bitcoin Trust ETF (IBIT) and was collaborating with “a leading exchange” to utilize Arch Public’s algorithmic trading strategies.
Scott Melker, a crypto influencer and lead crypto adviser to Red Light Holland, noted that the firm is “adopting a balanced and responsible approach to Bitcoin by combining ETF exposure with advanced trading strategies via Arch Public.”
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