If you’ve been following crypto treasuries, KindlyMD (NAKA) has been on a wild ride.
Since merging with Nakamoto Holdings, the company’s stock has plunged more than 95%, turning what was once a “bitcoin treasury darling” into a cautionary tale. Shares briefly peeked in the mania of spring, but now NAKA’s trading around $0.40, even after a modest 9.5% pop Thursday morning.
So what’s the company doing? A share buyback program.
CEO David Bailey framed it as a vote of confidence: “This share repurchase program reflects our confidence in the long-term value of the Company and adds an important degree of flexibility to our capital allocation framework.”
No word yet on how much money or when the buybacks will happen. But here’s the kicker: NAKA’s bitcoin holdings dwarf its market value.
According to the company dashboard, NAKA owns 5,398 BTC. At Bitcoin’s current price of $88,000, that’s roughly $1 billion in crypto, far above the company’s enterprise value of $400 million. In other words, every share buyback could be highly accretive, potentially boosting shareholder value even as the market questions the strategy of swapping investor dollars for more Bitcoin.
The backdrop isn’t exactly rosy. Earlier this week, NAKA received a Nasdaq delisting notice, after trading below $1.00 for several weeks. But the buyback program is a signal: management believes in their long-term thesis, and they’re willing to put capital behind it.
Bottom line: NAKA’s stock is cheap relative to its Bitcoin treasury. If the company executes the buyback wisely, it could be one of those rare situations where the market’s pessimism might turn into a buying opportunity—assuming Bitcoin keeps holding its value.
