Bitcoin News Today: Traders Watch as KindlyMD Battles Nasdaq Delisting Threat Amid Bitcoin Shift

Bitcoin treasury firm KindlyMD is facing the risk of being delisted from the Nasdaq after its stock price fell below the exchange's $1 minimum bid requirement. The company received a formal notice from the Nasdaq Listing Qualifications Department following 30 consecutive trading days with a closing price under $1. It now has until June 8, 2026, to regain compliance by maintaining a bid price of at least $1 for 10 consecutive trading days according to Nasdaq rules.

KindlyMD's shares, trading under the ticker NAKA, currently sit at $0.38, down more than 98% from its peak of around $34.77 earlier in the year. The decline is attributed in part to a $563 million private investment in public equity (PIPE) financing strategy, which unlocked a large number of restricted shares in September, leading to increased selling pressure.

The company announced in May its merger with Nakamoto Holdings, a Bitcoin-focused entity, to shift toward a Bitcoin treasury strategy. Despite a brief surge to $25 in early May, the stock price has since plummeted. The merger was finalized in August, after which KindlyMD acquired 5,764 Bitcoin in a $679 million purchase.

Why the Standoff Happened

KindlyMD's compliance issue stems from Nasdaq's minimum bid price rule, which requires listed companies to maintain a stock price above $1. The firm failed to meet this threshold after its share price dropped below $1 in October. The decline has been linked to its financing approach, which involved issuing discounted shares to raise capital for Bitcoin purchases. When a large portion of these shares became eligible for resale in September, it intensified downward pressure on the stock price.

The company now faces a critical 180-day window to comply with Nasdaq rules. If it fails to do so by June 2026, it may seek an extension by transferring to the Nasdaq Capital Market. However, the company has not yet outlined a clear strategy to address the issue and warned that neither a transfer nor a reverse stock split guarantees success.

How Markets Reacted

KindlyMD's stock has continued to trade on the Nasdaq Global Market during the compliance period, but its price weakness has raised concerns about liquidity and investor confidence. The stock has dropped more than 73% year-to-date and nearly 30% over the past month. Market observers note that publicly traded Bitcoin treasury companies have generally underperformed their underlying assets, with investors wary of equity dilution and earnings volatility according to market analysis.

The broader market for digital asset treasuries has also seen a slowdown. November inflows into digital asset treasuries hit $1.32 billion, the lowest level of the year, reflecting waning enthusiasm amid regulatory uncertainty and ongoing volatility according to financial data. This trend has been amplified by the challenges faced by KindlyMD, which is now among the top 20 publicly traded companies with Bitcoin holdings, but with a market cap of just $256 million according to industry reports.

What This Means for Investors

For shareholders, the delisting risk raises the possibility of a move to over-the-counter markets, where trading activity is often less liquid and less regulated. This could make it more difficult for investors to buy or sell shares and reduce visibility for the company. If delisting occurs, KindlyMD may explore a reverse stock split or a transfer to the Nasdaq Capital Market, though success is not guaranteed.

Analysts highlight the broader implications of this situation for the Bitcoin treasury sector. While some companies, like MicroStrategy, continue to grow their holdings despite stock price declines, the challenges faced by KindlyMD underscore the risks of balancing crypto-focused strategies with traditional market compliance. For now, investors are watching closely to see if the firm can stabilize its share price and avoid delisting.