Kindly MD (NAKA) Plunges 9.73% as Crypto Investment and Regulatory Scrutiny Fuel Investor Fears

Kindly MD (NAKA) fell 0.97% on Tuesday, marking its second consecutive day of declines as the stock hit a record low. The share price dropped 11.65% intraday, with the two-day loss reaching 9.73%, reflecting mounting investor concerns over the company’s strategic and financial trajectory.

The recent turmoil stems from a $30 million investment by Nakamoto Holdings, a subsidiary of Kindly MD, into Tokyo-listed cryptocurrency treasury firm Metaplanet. The move, announced on September 24, triggered a sharp sell-off as investors questioned the allocation of capital toward speculative blockchain ventures rather than core operations. The investment coincided with an at-the-market equity program to raise up to $5 billion, further pressuring the stock and signaling a focus on aggressive expansion over near-term profitability.

Compounding the issue, the company faces regulatory scrutiny and patient safety concerns, which have eroded confidence in its dual healthcare-crypto business model. The regulatory environment for firms operating in both sectors remains uncertain, amplifying risks for a company already grappling with poor financial metrics. Despite holding $6.02 million in cash, Kindly MD reported negative EBIT margins (-242.9%) and pre-tax profit margins (-190.7%), highlighting unsustainable operations. A price-to-sales ratio of 307.69 and a negative price-to-book ratio of 90.47 underscore the disconnect between market valuation and tangible earnings.

Market sentiment has turned sharply bearish, with the stock’s volatility driven by short-term momentum trading and algorithmic sentiment analysis. The lack of a clear path to profitability, coupled with high debt levels and operational losses, has led to a flight of institutional and retail investors. Unless Kindly MD can demonstrate improved capital discipline, address regulatory risks, and pivot toward sustainable growth, the stock is likely to remain a speculative play with heightened volatility.