Kindly MD's Shares Plummet 54% Amidst SEC Approval of Restricted Shares and CEO Warning of Volatility.

Kindly MD's shares plummeted 54% to $1.26 after the SEC approved trading of restricted shares from a $200 million fundraising deal. CEO David Bailey encouraged short-term investors to exit, warning of volatility as the healthcare company transitions into a Bitcoin treasury operation. The company's market cap of $504 million now trades below the $663 million value of its 5,765 Bitcoin holdings, creating a potential discount opportunity.

Kindly MD's shares experienced a significant plunge of 54%, reaching $1.26, following the Securities and Exchange Commission's (SEC) approval for the trading of restricted shares from a $200 million fundraising deal. The healthcare company's transition into a Bitcoin treasury operation has sparked volatility and uncertainty among investors.

The company filed an S-3 registration on September 12, 2025, which unlocked previously restricted PIPE shares, increasing overall market supply. CEO David Bailey advised short-term investors to exit their positions, citing potential volatility during the transition. The market's reaction was swift, with trading volume surging to approximately 80-89 million shares, the highest since February, and the share price dropping significantly.

The market capitalization of Kindly MD now stands at $504 million, which is below the estimated value of its Bitcoin holdings. The company holds 5,765 bitcoins, valued at approximately $663 million. This discrepancy between the market cap and the value of the Bitcoin holdings has raised concerns about market skepticism or liquidity-driven discounting.

Investors should be aware of elevated volatility and heavy trading volume as newly tradable shares hit the market. Short-term price pressure and temporary disconnects between market cap and underlying Bitcoin value are likely until investor alignment stabilizes. Long-term investors should evaluate their alignment with the company's Bitcoin-native vision and risk tolerance, while short-term traders may consider heeding management's advice to exit.

The Kindly MD stock crash reflects an unlocked PIPE supply and investor uncertainty during the company's pivot towards a Bitcoin-native treasury model. Despite the volatility, the company retains significant Bitcoin assets, presenting a potential discount opportunity for long-term investors.