Bitcoin treasury companies faced fresh skepticism as NAKA (Kindly MD, Inc.) shares fell 55.40% on Monday to $1.24, according to the source. The drop reinforced concerns around Bitcoin treasury companies and investor exhaustion.
Selloff tied to S3 and discounted shares
NAKA’s decline accelerated after its S3 registration with the SEC enabled discounted private placement shares to trade freely, quickly adding supply. CEO David Bailey also urged “uncertain investors to exit” during a social audio space, which appeared to intensify selling.
The stock is now down 96% from its all-time high of $34.77 in May 2025, leaving sentiment toward Bitcoin treasury companies notably fragile. For context, see shelf registration.
Investment pledges vs. weak profitability
Despite bearish price action, subsidiary Nakamoto Holdings has committed up to $30 million to invest in Japan’s Bitcoin treasury company Metaplanet, dated September 9, 2025. However, Kindly MD’s profitability remains deeply negative.
- EBIT margin: -242.9%
- EBITDA margin: -235.8%
As a result, balance-sheet pressure and dilution risk are top of mind for Bitcoin treasury companies reliant on equity financing, highlighting a trade-off: pursue strategic investments while absorbing steep operating losses.
What investors are watching next
Market participants will watch secondary sales dynamics and any updates on the Metaplanet allocation. They may also track whether management provides further guidance on liquidity and dilution. If volatility persists, scrutiny of Bitcoin treasury companies could intensify.
For a primer on fiat-pegged assets that often feature in corporate strategies, read our overview of how stablecoins work.
