Kindly MD's Bitcoin Strategy: Post-Selloff Valuation Looks Compelling

Summary After merging with Nakamoto, Kindly MD pivoted to a Bitcoin-treasury strategy while maintaining negligible legacy outpatient healthcare services in ￰0￱ has secured a loan from Two Prime and redeemed a Yorkville ￰1￱ long-term goal remains to continue refinancing and growing its Bitcoin ￰2￱ main risk remains the Nasdaq’s new regulations that require shareholder approval for equity-funded crypto purchases. However, NAKA’s Bitcoin holdings imply a much more reasonable valuation for the stock at these levels. Therefore, I believe NAKA’s risk-reward equation has substantially improved, which is why I upgrade it to a viable speculative “buy” for long-term Bitcoin ￰3￱ MD, Inc.

( NAKA ) is a Bitcoin ( BTC-USD ) treasury accumulator. However, part of what makes them unique is that they also maintain their legacy outpatient healthcare ￰4￱ the merger with Nakamoto Holdings, the company has focused on supporting its crypto-treasury ￰5￱ this sense, the most pressing matter has been navigating the Nasdaq's ( NDAQ ) new scrutiny of crypto purchases financed by ￰6￱ said that, I feel that NAKA now offers much more value after the recent sell-off. So, if you’re a long-term Bitcoin bull, NAKA could be a viable speculative “Buy” at these ￰7￱ Treasury With A Spin Kindly MD, ￰8￱ a public Bitcoin treasury company that also keeps healthcare facilities for cannabis-related ￰9￱ operations were part of Kindly’s legacy before merging with Nakamoto Holdings, which was completed in August ￰10￱ firm is currently headquartered in Salt Lake City, Utah.

I previously covered NAKA last September, rating them a “Hold” at the time because I saw several regulatory uncertainties related to Nasdaq’s crypto ￰11￱ then, the stock has declined substantially by approximately 78.8%, so I think it’s worth updating that analysis.) signed a letter of ￰12￱ terms were for five-year $250 million convertible notes to be issued to Antalpha to refinance the Two Prime credit line and to expand BTC ￰13￱ other words, NAKA is essentially swapping a short-term Bitcoin loan for a longer-term ￰14￱ idea is to lower its cash-cost financing structure while preserving its Bitcoin treasury balance.) approach. Still, underneath the fancy financial operations, the idea is to try to balance accumulating as much Bitcoin as possible while having reasonably responsible risk-management ￰15￱ the same idea as MSTR, which has Bitcoin as its core treasury asset, and raises capital to buy more and accumulate it as a ￰16￱ Key Event And Bitcoin Holdings Furthermore, the next main event for NAKA will be its upcoming annual meeting in December ￰17￱ this meeting, NAKA will elect Class I directors and vote on the reincorporation of the company from Utah to ￰18￱ more importantly, this move will realign NAKA with common large-cap governance norms that may offer more flexible corporate and financing ￰19￱ this could be vital for NAKA because of the increased Nasdaq scrutiny around equity issuance for crypto purchases.) their Bitcoin holdings to 5.765, and their fully diluted shares to 511 million.

Likewise, we need to account for the added $203 million loan from Two Prime. Lastly, at the time of this writing, NAKA’s share price is around $0.95 per share. Thus, I estimate a market cap of $485.5 ￰20￱ if we simply add its debt, we get an approximate enterprise value of $688.5 ￰21￱ their dashboard lists their EV at $684 million , so the $4.5 million difference between my figure and theirs, I’ll assume, is NAKA’s current net cash balances.) of 1.07. Moreover, I think it’s worth highlighting that ￰22￱ Securities also began coverage of NAKA earlier this ￰23￱ initial rating was a “Buy”, with a price target of $2.00.

They grouped NAKA with other digital asset treasury firms (DATCOs), such as Bitmine Immersion Technologies ( BMNR ), SharpLink Gaming ( SBET ), FG Nexus ( FGNX ), and Sequans Communications ( SQNS ), all of them with a buy ￰24￱ their thesis is essentially that DATCOs can be more opportunistic and potentially amplify crypto returns during bullish cycles. And, coupled with NAKA’s much more compelling valuation, I think it makes for a good speculative “Buy” at these levels.