NAKA shares plunge 54% in a day, reinforcing investor exhaustion toward Bitcoin treasury companies

KindlyMD’s NAKA shares slumped to $1.28 on Sept. 15, down by 54% in the past 24 hours and over 90% over one month.

The healthcare-turned-Bitcoin (BTC) treasury company faces mounting pressure from equity dilution plans and broader investor fatigue toward digital asset treasury strategies.

The Nasdaq-traded medical firm transformed into a Bitcoin treasury company after merging with Nakamoto in August, subsequently announcing plans to raise up to $5 billion through an at-the-market stock program to expand Bitcoin reserves.

KindlyMD disclosed its first purchase of approximately 5,744 BTC valued at $635 million earlier this month.

The stock peaked above $15 in late August before beginning a precipitous decline that accelerated throughout September.

The company’s shelf registration filing with the Securities and Exchange Commission allows gradual share issuance at prevailing market prices, creating substantial dilution concerns among investors.

DAT saturation signals

Grayscale’s August report documented growing investor exhaustion toward digital asset treasury (DAT) companies, noting that Bitcoin exchange-traded products experienced their first monthly net outflows since March, with $755 million in redemptions.

The report measured supply-demand imbalances through “mNAV” ratios comparing market capitalizations to underlying crypto asset values.

According to Grayscale, mNAV ratios for major DAT companies have converged toward 1.0, indicating a balance between supply and demand rather than the premium valuations these vehicles previously commanded.

The result suggests investors no longer pay premiums for crypto exposure through public equity instruments. Despite apparent exhaustion regarding Bitcoin treasury companies, altcoin DATs continue to emerge.

Altcoin treasuries

Recently, new digital asset treasury announcements for Solana, Cronos, and other tokens surfaced. This indicates that sponsors continue to launch vehicles despite a weakening investor appetite.

The massive equity raise necessary to fund Bitcoin acquisitions dilutes existing shareholders significantly while providing no operational cash flow improvements for KindlyMD.

Bitcoin’s recent price uncertainty compounds these concerns, as the company’s market value becomes directly tied to BTC’s performance rather than underlying business fundamentals.

Yet, CryptoQuant head of research Julio Moreno suggested that NAKA’s crash is not related to Bitcoin’s recent uncertainty, but rather to insiders’ activity.

He stated:

“Bitcoin treasury company NAKA is down more than 50% TODAY as insiders dump, and more than 90% since ATH.”

Moreno reiterated that DAT companies are just the latest mania of this phase of the cycle, similar to the emergence of memecoins earlier and non-fungible tokens (NFTs) in 2021.

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