Nakamoto's Market Value Falls Below Bitcoin Holdings After PIPE Unlock

Nakamoto's market value has dropped below the value of its 5,765 BTC holdings, a 43% discount, after the SEC-cleared resale of previously restricted shares from recent financings. The selloff followed the effectiveness of a Form S-3 resale registration that registered PIPE investors to sell stock into the open market.

The market value of Nakamoto Holdings, Inc. (NAKA), a Bitcoin-native holding company, has dropped significantly, falling below the value of its 5,765 BTC holdings. The selloff, which occurred after the SEC approved the resale of previously restricted shares from a $200 million fundraising deal, has resulted in a 43% discount. The company's market cap of $504 million now trades below the $663 million value of its Bitcoin holdings 'I Encourage You to Exit': Bitcoin Treasury Nakamoto's Shares Plunge 50% After CEO Letter^[1].

The CEO of Kindly MD, David Bailey, cautioned investors about the potential volatility as the company transitions into a Bitcoin treasury operation. He encouraged short-term investors to exit, warning that the transition may represent a point of uncertainty 'I Encourage You to Exit': Bitcoin Treasury Nakamoto's Shares Plunge 50% After CEO Letter^[1]. The company's shares plummeted more than 54% to trade at $1.26, the lowest since February, with trading volume reaching above 89 million shares, the highest since February 12 'I Encourage You to Exit': Bitcoin Treasury Nakamoto's Shares Plunge 50% After CEO Letter^[1].

The company's market cap is now smaller than the value of its Bitcoin holdings, as indicated by the market net asset value (mNAV) falling to 0.75. This means the $504 million market capitalization is less than the value of its 5,765 Bitcoin, worth about $663 million at the current BTC price 'I Encourage You to Exit': Bitcoin Treasury Nakamoto's Shares Plunge 50% After CEO Letter^[1].

Nakamoto Holdings, Inc. completed its merger with Kindly MD, a publicly traded healthcare company, a month ago. As part of the deal, Nakamoto Holdings became a wholly owned subsidiary of Kindly MD and is charged with operating the Bitcoin financial services line of business under the Nakamoto brand 'I Encourage You to Exit': Bitcoin Treasury Nakamoto's Shares Plunge 50% After CEO Letter^[1].

The recent selloff follows the effectiveness of a Form S-3 resale registration that registered PIPE investors to sell stock into the open market. The company's shares fell approximately 55.75% in pre-market trading at the time of reporting, reflecting the increased market supply from the resale of registered shares Kindly MD (NAKA) Registers PIPE Shares in S-3 Filing — Bitcoin-Holding Firm Sees 55.8% Pre-Market Plunge, Warns of Near-Term Volatility^[3].

In summary, Nakamoto's market value has dropped significantly, falling below the value of its Bitcoin holdings, indicating a 43% discount. The selloff is a result of the SEC-cleared resale of previously restricted shares and the increased market supply from the registered shares becoming eligible for public trading.