NAKA Shares Plunge 8.51% to Record Low as Crypto Investment and Equity Offering Spur Skepticism

Kindly MD (NAKA) shares fell to a record low on October 10, 2025, with an intraday decline of 8.51%, extending a five-day losing streak that has erased 23.01% of its value. The selloff reflects growing investor skepticism over the company’s strategic direction and financial health amid a series of controversial decisions and regulatory uncertainties.

The stock’s decline was triggered by Nakamoto Holdings’ $30 million investment in Tokyo-listed Bitcoin treasury firm Metaplanet, announced on September 24, 2025. Critics argue the allocation prioritizes high-risk cryptocurrency ventures over core healthcare operations, raising concerns about capital discipline. The move, combined with an at-the-market equity offering to raise up to $5 billion, has intensified scrutiny over management’s ability to balance growth ambitions with operational sustainability.

Financial metrics have further undermined confidence. The company reported a negative EBIT margin of -242.9% and a pre-tax profit margin of -190.7%, highlighting unsustainable losses. Despite $6.02 million in cash reserves, liabilities including $923,394 in debt create financial instability. A price-to-sales ratio of 307.69 and a negative price-to-book ratio of 90.47 underscore a valuation disconnected from earnings or asset value, prompting both institutional and retail investors to exit.

Regulatory and governance risks have compounded the challenges. Patient safety concerns in the healthcare segment and unclear compliance frameworks for its crypto operations have drawn scrutiny. Recent governance actions, including the CEO’s public letter advising shareholders to exit and an SEC filing unlocking 89 million shares, signaled internal instability. The resulting 54% single-day price drop to $1.26—the lowest since February 2025—reflected a lack of alignment between management and investors.

Market dynamics suggest NAKA has become a speculative asset, driven by algorithmic trading and retail sentiment. A mNAV of 0.75 indicates its $504 million market cap lags behind its $663 million in Bitcoin holdings, highlighting skepticism about monetization potential. Without a clear path to profitability or operational integration between healthcare and crypto segments, the stock remains a high-risk proposition, with its future hinging on strategic refocusing and financial discipline.