Shares of KindlyMD Inc. have seen a significant drop following CEO David Bailey's recommendation for short-term traders to sell. We examine the details of the situation.
CEO's Call for Shares to be Sold
Shares of KindlyMD Inc. fell by more than 55% after CEO David Bailey urged short-term traders to sell their shares. At market close, the stock price was $1.24, down from $2.78. Bailey indicated that the influx of shares from a private investment in public equity (PIPE) deal could create 'share price volatility' and advised those seeking quick profits to exit.
Bitcoin Holdings Information
According to BitcoinTreasuries.NET, KindlyMD holds 5,765 BTC valued at over $665 million, which exceeds the company’s market capitalization of $466 million. This results in the company trading at a multiple of net asset value (mNAV) of 0.7, indicating that current stock values are less than their intrinsic Bitcoin asset values.
Company's Long-Term Plans
Despite the recent drop, Bailey is optimistic about the company's long-term strategy, stating that KindlyMD aims to become 'the leading Bitcoin-native financial institution.' He emphasized that achieving this goal requires patience, creativity, and discipline.
The situation with KindlyMD Inc. shares illustrates the risks confronting crypto treasury companies, where stock prices may not accurately reflect the true value of their Bitcoin holdings.
