KindlyMD Bitcoin Treasury Faces Nasdaq Delisting: Can It Survive Like MicroStrategy?

KindlyMD Bitcoin Treasury Faces Nasdaq Delisting: Can It Survive Like MicroStrategy?

KindlyMD Inc., a healthcare company with a focus on Bitcoin treasury assets, is in danger of being delisted from Nasdaq due to its stock price falling below $1. The company must take action to regain compliance by June 2026 to avoid potential delisting.

Key Takeaways:

KindlyMD's share price is currently at $0.38, significantly below the $1 threshold required for Nasdaq compliance.
The company has until June 2026 to raise its stock price and maintain it above $1 for at least 10 consecutive trading days.
Its Bitcoin strategy saw a massive acquisition of Bitcoin, valued at approximately $502.6 million, but the company has faced considerable losses.
Financial filings indicate a significant net loss, primarily due to the costs associated with its Bitcoin strategy.
The situation of KindlyMD differs from that of MicroStrategy, which is undergoing scrutiny due to index eligibility but not facing immediate delisting.

KindlyMD's Risk of Nasdaq Delisting

KindlyMD Inc., which combines healthcare services and Bitcoin treasury holdings, is currently facing potential delisting from the Nasdaq. This situation arose because its stock price has remained below the minimum bid requirement for an extended period.

According to a Form 8-K filed on December 12, KindlyMD received notice from Nasdaq's Listing Qualifications Department that its common stock has closed under $1 for 30 consecutive days. This status violates Nasdaq Listing Rule 5450(a)(1).

KindlyMD stock price update

At present, KindlyMD's shares, which are traded under the ticker NAKA, are priced at $0.38. The stock has dropped nearly 5% today, over 30% in the last month, and has experienced a staggering decline of over 73% year-to-date.

Deadline for Recovery: June 2026

As per Nasdaq's regulations, KindlyMD has 180 calendar days—until June 8, 2026—to restore compliance by maintaining a closing bid price of at least $1 for a minimum of 10 consecutive trading days.

Current stock situation

This predicament represents a sharp contrast to the initial enthusiasm surrounding KindlyMD's Bitcoin investment strategy. Earlier this year, the company merged with Nakamoto, a Bitcoin-focused entity, becoming one of the first healthcare companies to adopt Bitcoin as a primary treasury asset.

The new entity continued under the KindlyMD name, with Nakamoto operating as a wholly-owned subsidiary. It raised over $700 million through private placements and convertible debt to fund Bitcoin acquisitions.

In August, KindlyMD made headlines by purchasing 5,764 Bitcoin in a single transaction, investing around $679 million at an average price exceeding $118,000 per coin. Presently, the company holds Bitcoin worth about $502.6 million, ranking it around 32nd among public Bitcoin treasury holders, a drop from 26th place three months ago.

Bitcoin holdings value

Currently, the valuation of its Bitcoin holdings reflects an unrealized loss of about $176 million, or roughly 26%. Bitcoin's price is around $87,000, which has seen slight gains this week. However, many companies publicly holding cryptocurrency have experienced stock prices that fell faster than the actual asset values.

The Divergent Paths of KindlyMD and MicroStrategy

The financial reports from KindlyMD depict challenges resulting from its rapid change in business strategy. In its third-quarter report, the company reported revenue of $0.4 million from healthcare operations, while operating expenses ballooned to $10.8 million, primarily due to its Bitcoin initiatives.

For the quarter, KindlyMD declared a net loss of $86 million, which includes non-cash charges associated with the Nakamoto merger and unrealized losses on digital assets.

It is essential to note that the Nasdaq's notice does not have an immediate impact on its listing, and shares will continue to trade on the Nasdaq Global Market during the compliance window.

Should the company fail to recover its stock price, it may choose to move to the Nasdaq Capital Market or pursue a reverse stock split, although both options come without guarantees of success.

This situation diverges from that of Strategy Inc., previously known as MicroStrategy, which faces uncertainty related to its index eligibility rather than immediate exchange listing rules.

In October 2025, MSCI began updating its index methodology, causing a significant drop in MSTR shares. The company has formally submitted a letter to MSCI contesting the changes.

While MSTR shares eventually stabilized after maintaining its Nasdaq 100 position, the threat of delisting still looms, potentially resulting in billions of dollars in mandatory sell-offs by passive funds. MSCI is expected to announce its final decision in January 2026.

Additionally, data indicates that digital asset treasury stocks have broadly underperformed relative to the underlying assets in recent times. In November, investor inflows into digital asset treasury stocks dwindled to just $1.32 billion, reflecting a cooling interest due to ongoing volatility and regulatory uncertainties.

Digital asset treasury performance