Bitcoin Treasury Firm KindlyMD Initiates Stock Buyback Program Amid Declining Share Prices
KindlyMD (NAKA), a bitcoin treasury company, announced that its board has authorized a stock buyback program. This move comes as NAKA's stock price has fallen more than 95% from its peak earlier this year. Shares were up about 9.5% in early trading, reaching approximately $0.40.
Despite the buyback, the company recently received a delisting notice from Nasdaq due to its share price remaining below $1 for several weeks. KindlyMD holds 5,398 bitcoin, which, at an $88,000 per BTC valuation, equates to holdings of about $1 billion—significantly higher than its enterprise value of roughly $400 million.
The buyback program could be accretive given these asset levels but raises questions about the business model of exchanging investor dollars for bitcoin. Earlier this year, NAKA completed a SPAC merger with Nakamoto Holdings. CEO David Bailey stated that the buyback reflects confidence in the long-term value of the company and adds flexibility to its capital allocation framework.
