Kindly MD (NAKA) Surges 7.69% but Plunges 3.42% as $5B ATM Program, Metaplanet Investment Spur Dilution Fears

Shares of Kindly MD (NAKA) surged 7.69% in trading, yet the stock closed at a record low, with an intraday decline of 3.42%. The volatility underscores ongoing investor uncertainty amid the company’s aggressive capital-raising moves and high-risk strategic bets.

A key driver of the stock’s turbulence is the firm’s $5 billion at-the-market (ATM) equity program, launched in late August 2025. The initiative, aimed at funding Bitcoin treasury operations, raised concerns about equity dilution and financial stability. Critics argue the scale of the offering signals overreliance on external financing, exacerbating skepticism about long-term sustainability.

Compounding the pressure, Kindly MD’s $30 million investment in Metaplanet—a Tokyo-listed Bitcoin treasury firm—sparked immediate market backlash. The allocation of significant cash reserves to a speculative venture, despite weak financial fundamentals, highlighted strategic risks. The company reported a pretax profit margin of -190.7% and a price-to-sales ratio of 362.15x, underscoring operational inefficiencies and a valuation disconnected from performance.

Analysts note the stock’s decline reflects broader market caution toward high-risk, low-revenue ventures. With Kindly MD’s cash reserves at $6.02 million, the timing of the $5 billion capital raise appeared desperate, diverting focus from core operations. The absence of a clear roadmap for monetizing Bitcoin holdings further eroded confidence, leaving investors to question the balance between speculative growth and fiscal prudence.

While some view the selloff as a potential buying opportunity, the path to recovery remains uncertain. The company’s Bitcoin-centric strategy hinges on volatile market conditions, and its financial metrics suggest a precarious balance sheet. For now, the stock’s trajectory will likely depend on whether the Metaplanet investment yields meaningful returns or deepens existing vulnerabilities.