Bitcoin: Kindly MD risks delisting from Nasdaq after collapse of its stock

Kindly MD thought it would reinvent itself with bitcoin. Listed on Nasdaq, the company refocused its strategy around the flagship asset after its merger with Nakamoto Holdings. However, the initial euphoria gave way to a sudden drop in price, leading to a formal warning from the American stock market. In the absence of rapid recovery, the company now risks deregistration.

A threat of delisting: Kindly MD ordered by Nasdaq to raise its share price

While bitcoin falls suddenly and triggers a wave of liquidations, the company Kindly MD, now listed under the ticker NAKA, has just received an official notification of non-compliance from Nasdaq on December 11.

The reason for this notification is related to the fact that its stock has been trading at a price below $1 for 30 consecutive business days. This situation places the company under threat of deregistration, unless it manages to recover its share price within the allotted time frame.

According to the regulatory filing addressed to the SECKindly has until June 8, 2026 to sustainably raise its stock above $1 for at least 10 consecutive sessions.

In case of failure, Kindly may consider a transfer to the Nasdaq Capital Marketsubject to meeting the listing criteria specific to this compartment. Failing this, the delisting will become effective, with serious consequences on its liquidity, its visibility and its ability to raise funds. Here are the essential elements to remember:

• The stock price below $1 for 30 business days, triggering an automatic Nasdaq procedure;

• A deadline until June 8, 2026 to find a compliant quotation over at least 10 consecutive sessions;

• The possibility of transfer to the Nasdaq Capital Market, provided that you meet the criteria of this alternative market;

• A risk of delisting if no effective corrective measures are taken.

This notification constitutes a clear alarm signal for a company which, despite a strategy focused on bitcoin, has failed to convince the financial markets. What happens next will largely depend on Kindly's ability to restore investor confidence within this tight deadline.

When bitcoin is not enough to support a stock market strategy

Kindly MD's shift towards bitcoin is not new. Last May, the Utah-based company announced its merger with Nakamoto Holdings, an entity founded by David Bailey, CEO of Bitcoin Magazine.

The project was ambitious: building a holding company in partnership with BTC Inc., with the declared objective of making Kindly a major player in Bitcoin treasury. The stock briefly hit $25 in late May, buoyed by the announcement.

However, this breath did not last. In September, a huge wave of resales followed the fundraising by PIPE (Private Investment in Public Equity), for a total of $563 million. These shares, sold at a reduced price to private investors, then became eligible for public resale. So, a massive influx of sell orders literally caused the price to drop by over 98%, down to $0.39 today.

In an interview with Forbes, David Bailey recognized that this financing had created brutal downward pressure. Despite everything, the strategy remains unchanged: Kindly currently holds 5,398 BTC, which the 19th place in the world among public companies holding bitcoinaccording to data from BitcoinTreasuries.NET.

Last August, the stated goal was to reach 1 million BTC, a colossal ambition in which the market no longer seems to believe. For comparison, Bitcoin treasury pioneer Strategy holds 671,268 BTC and maintains a solid capitalization, despite a 40% decline in its stock over the course of this year.

Kindly MD remains under pressure to prove that its strategy can survive the demands of traditional markets. Whatever the outcome, his case highlights that betting on the price of bitcoin guarantees neither stock market stability nor lasting investor confidence.