KindlyMD (NAKA) Approves Share Buyback Amid Steep Stock Decline

The continued drop in KindlyMD’s (NAKA) share price has left the company trading at a significant discount to the value of its bitcoin holdings.

Following a drastic collapse since its SPAC merger with Nakamoto Holdings, NAKA’s board has approved a stock buyback program.

“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,” said CEO David Bailey in a press release. No details were provided regarding the timing or the total funds to be allocated for the buybacks.

NAKA’s shares have fallen more than 95% from their peak during the bitcoin treasury mania this past spring. Earlier this week, the company received a Nasdaq delisting notice after its stock traded below $1.00 for several weeks. Despite this, shares are up 9.5% early Thursday, trading at $0.40.

According to NAKA’s dashboard, the company holds 5,398 bitcoin on its balance sheet. At bitcoin’s current price of roughly $88,000, those holdings are valued at around $1 billion—well above NAKA’s enterprise value of approximately $400 million.

The buyback program could therefore be highly accretive, though it also raises questions about the company’s broader business strategy of using investor capital primarily to purchase bitcoin.