Bitcoin News Today: KindlyMD's $5 Billion ATM Plan Sparks Bitcoin Betting and Share Slide

Nakamoto Holdings has launched a $5 billion at-the-market (ATM) equity offering program to support its Bitcoin treasury strategy following its recent merger with KindlyMD. The offering, announced on August 26, 2025, enables the combined entity to issue and sell shares of its common stock through a diverse group of sales agents, including TD Securities, Cantor, B. Riley Securities, and others. Proceeds from the program will be allocated to general corporate purposes, with a primary focus on Bitcoin accumulation, working capital, acquisitions, capital expenditures, and investments in new projects. The company has already purchased 5,744 Bitcoin, valued at approximately $679 million, as part of its treasury strategy.

The ATM program operates under a prospectus supplement dated August 26, 2025, and is part of the combined company’s automatically effective Form S-3 registration statement with the U.S. Securities and Exchange Commission (SEC). Sales of shares will be executed at prevailing market prices, primarily through the Nasdaq Global Market. The program is designed to provide flexibility in capital deployment, allowing the company to respond to market conditions and optimize shareholder value. CEO and Chairman David Bailey emphasized that the initiative represents a “pivotal step” in the company’s long-term capital strategy, following the completion of the merger with Nakamoto Holdings just two weeks prior.

The strategic decision to pursue a Bitcoin treasury model has been met with mixed market reactions. On the day of the announcement, shares of KindlyMD (NAKA) fell by 12% during regular trading and dropped an additional 2.7% in after-hours trading to close at $7.85. The immediate response underscores investor concerns over the dilutive impact of the large-scale equity offering. However, it is worth noting that the stock has surged 330% since early May, when the company first publicized its Bitcoin strategy. Over the course of the year, the stock has appreciated by 550%, reflecting strong demand for exposure to both the healthcare and cryptocurrency sectors.

The use of an ATM program allows KindlyMD to sell shares continuously at market prices without the need for a fixed pricing mechanism, thereby minimizing the traditional discount associated with secondary offerings. Unlike a one-time offering, this method spreads the dilutive effect over time, enabling the company to issue shares when market conditions are favorable. The selection of nine sales agents—TD Securities, Cantor, B. Riley Securities, Benchmark, Canaccord Genuity, Cohen & Company, Craig-Hallum, Needham & Company, and Yorkville Securities—provides KindlyMD with access to a broad range of investor bases and enhances the efficiency of the capital-raising process.

David Bailey also highlighted the importance of transparency and governance in the execution of the Bitcoin treasury strategy. He stated the company intends to implement “world-class” standards in these areas, though he acknowledged that immediate priorities must be balanced against long-term improvements. The company’s strategic alignment with Bitcoin is further reinforced by its recent acquisition of 5,744 Bitcoin and its intent to expand its holdings through the ATM program. This move positions KindlyMD as one of the few publicly traded companies actively pursuing a dual mandate of healthcare innovation and cryptocurrency treasury management.

The announcement of the ATM program and the subsequent share price decline reflect the broader trend of companies in the financial sector adopting Bitcoin as a treasury asset. As more firms seek to integrate digital assets into their capital structures, the market is likely to see increased volatility and scrutiny of dilutive financing strategies. The combined company’s ability to execute its Bitcoin strategy effectively will be critical to long-term shareholder value, though risks related to market conditions, regulatory changes, and operational execution remain significant factors to monitor.

Source: [1] KindlyMD Announces $5 Billion At-The-Market Equity ... (https://nakamoto.com/update/kindlymd-announces-5-billion-at-the-market-equity-offering-program) [2] KindlyMD Announces $5 Billion At-The-Market Equity ... (https://www.stocktitan.net/news/NAKA/kindly-md-announces-5-billion-at-the-market-equity-offering-eonv5inb5blf.html) [3] KindlyMD shares slide on $5B stock offering for Bitcoin buy (https://cointelegraph.com/news/kindlymd-announces-5b-equity-offering-program-but-stock-slides)