Finance

KindlyMD’s Bitcoin Stock Plummets 10% After Earnings Delay: What’s Behind the Nakamoto Merger Fallout?

KindlyMD’s stock fell nearly 10% after missing its earnings deadline due to accounting issues.

byAndres Castro

November 17, 2025, 9:24 PM

Close-up of a golden Bitcoin coin against a vibrant purple and pink upward-trending line graph.

A physical Bitcoin coin is centered against a vibrant line graph suggesting an upward market trend. By MDL.

Executive Summary

KindlyMD’s stock price fell nearly 10% after announcing it would miss its third-quarter earnings deadline, citing complex accounting related to its merger with Nakamoto.

The company’s shares are down over 95% from six months ago, dropping to $0.55 by the end of Monday’s trading day.

KindlyMD anticipates significant Q3 losses, including a $59 million loss on the Nakamoto acquisition and an unrealized loss exceeding $22 million on its remaining digital asset holdings, despite a projected $21.8 million positive change in contingent liability.

The Story So Far

KindlyMD’s recent stock decline and missed Q3 earnings deadline are primarily due to complex accounting issues arising from its earlier merger with Nakamoto, a Bitcoin treasury firm, a situation further exacerbated by anticipated significant financial losses related to the acquisition, digital asset holdings, and debt extinguishment.

Why This Matters

The delayed earnings report and anticipated substantial losses from KindlyMD, particularly stemming from its merger with Nakamoto and significant digital asset holdings, signal severe financial distress and integration challenges. This has profoundly impacted investor confidence, evidenced by a 95% stock decline in six months, underscoring the inherent volatility and risks associated with companies deeply invested in cryptocurrency treasuries.

Who Thinks What?

KindlyMD attributes its delay in filing Q3 earnings to complex accounting related to its merger with Nakamoto and anticipates significant losses from the acquisition, digital asset sales, and debt extinguishment, partially offset by a positive change in the fair value of a contingent liability.

The market reacted negatively to KindlyMD’s delayed earnings report and projected substantial losses, causing the company’s stock price to fall by nearly 10% on Monday and over 95% in the last six months.

KindlyMD, a Bitcoin treasury firm trading on the Nasdaq under the ticker NAKA, saw its stock price fall nearly 10% on Monday after the company announced it would miss its third-quarter earnings deadline. The firm cited complex accounting related to its merger with Nakamoto as the reason for the delay, with shares now down more than 95% from six months ago.

Earnings Delay and Market Reaction

The company’s shares dropped to $0.55 by the end of Monday’s trading day, marking a 25% decline over the past week. KindlyMD, like other U.S. publicly traded companies, had a November 14 deadline to file its Q3 earnings report, which covers the period ending September 30.

Instead of its 10-Q report, KindlyMD filed paperwork with the U.S. Securities and Exchange Commission (SEC) on Friday. The filing stated that the intricacies of accounting stemming from its merger with Nakamoto “necessitated additional time to ensure the accuracy and completeness of the information.” Earlier this year, KindlyMD merged with Nakamoto, a Bitcoin treasury firm previously known as Nakamoto Games, leading to Nakamoto founder David Bailey being appointed CEO in August.

Anticipated Financial Impacts

The firm indicated in its filing that its upcoming Q3 numbers would reflect a “significant change” compared to the previous year. KindlyMD expects to report a $59 million loss on the Nakamoto acquisition, a $1.4 million realized loss from selling digital assets, and an unrealized loss exceeding $22 million on its remaining digital asset holdings. Additionally, a $14.4 million loss on the extinguishment of debt is anticipated.

Despite these significant losses, KindlyMD also projects a $21.8 million positive change in the fair value of contingent liability. This gain results from a markdown in the value of one of the company’s liabilities, which will be reflected positively in its earnings report.

Market Outlook

The delay in KindlyMD’s earnings report and the forecast of substantial losses highlight the financial complexities following its merger with Nakamoto, contributing to a dramatic decline in its stock performance over recent months.