KindlyMD (NAKA), whose stock value has plummeted dramatically following its SPAC merger with Nakamoto Holdings, has received approval from its board to initiate a share repurchase program.
CEO David Bailey expressed in an official statement that “This buyback initiative demonstrates our strong belief in the company's long-term potential and provides greater flexibility in how we manage our capital resources.”
The company has not revealed any specifics regarding the schedule or the amount of funds intended for these repurchases.
After reaching a high point during last spring's bitcoin treasury frenzy, NAKA's stock price has dropped over 95%. Recently, the firm announced it had received a delisting warning from Nasdaq due to its shares trading below $1.00 for multiple consecutive weeks.
Early Thursday trading saw shares rise by 9.5%, reaching $0.40 per share.
According to NAKA's dashboard, they currently hold 5,398 bitcoins on their balance sheet. With bitcoin priced around $88,000 each at present, this amounts to nearly $1 billion—significantly exceeding NAKA's enterprise valuation of approximately $400 million.
This makes the planned stock buybacks potentially very accretive; however, it also raises questions about the company’s strategy of exchanging investor capital primarily for bitcoin assets.