Shares of KindlyMD Inc., a healthcare firm turned Bitcoin (BTC) holdings company, plunged over 55% on Monday after CEO David Bailey urged short-term traders to exit. The stock closed at $1.24, down from $2.78, before recovering slightly with a 4.8% after-hours gain.
Bailey’s views were added in a shareholder letter from him following Friday’s regulatory filing for a $200 million private investment in public equity (PIPE) deal. The offering allowed discounted shares sold to private investors to be freely traded, sparking fears of selling pressure.
In his letter, Bailey admitted that the influx of PIPE deal shares would trigger “share price volatility.” He encouraged traders only seeking quick profits to sell, calling this phase a “critical opportunity” to build a shareholder base aligned with the company’s long-term Bitcoin vision.
“This transition may represent a point of uncertainty for investors,” Bailey wrote, “we look forward to emerging on the other side with alignment and conviction.” He later posted on X, describing the session as a “day of transition” and noting nearly 80 million shares had traded.
The selloff has pushed KindlyMD’s market capitalization below the value of its Bitcoin reserves.
According to BitcoinTreasuries.NET, the firm holds 5,765 BTC worth over $665 million, while its market cap sits at just $466 million. That leaves the company trading at a multiple of net asset value (mNAV) of 0.7.
Despite the plunge, Bailey remains confident. He said KindlyMD’s long-term mission is to become “the leading Bitcoin-native financial institution,” a goal he insists requires patience, creativity, and discipline.
For now, the crash highlights the risks facing crypto treasury companies, where Bitcoin holdings can exceed their overall market value.