Nakamoto drops below Bitcoin value as PIPE unlock hits

KindlyMD’s Nakamoto (NAKA) fell more than 55% on September 15 and traded below the value of its bitcoin holdings after the SEC-cleared resale of previously restricted shares from recent financings. The company’s market cap is now well beneath the value of its 5,765 BTC, marking a discount to its bitcoin per share.

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The selloff followed the September 12 effectiveness of a Form S-3 resale registration that registered PIPE investors to sell stock into the open market. Those investors include subscribers to a $51.5 million PIPE priced at $5.00 per share completed in June, alongside a larger initial PIPE struck at $1.12 per share agreed in May.

Nakamoto’s capital build began in May with a merger agreement and roughly $511.7 million of initial PIPE commitments at $1.12 per share, augmented by the $51.5 million June add-on at $5.00. On August 15, the company closed a $200 million senior secured convertible note with an initial conversion price of $2.80 per share. Four days later, on August 19, it executed its first post-merger purchase, 5,743.91 BTC for approximately $679 million. On August 26, it put a $5 billion at-the-market program in place.

NAKA’s market value has notably slipped below the $665.8 million value of its 5,765 BTC. The market cap at the September 15 market close was around $466.4 million, representing a 43% discount to BTC holdings. Considering the $200 million convertible note, this puts current enterprise value at approximately the value of BTC holdings.

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At time of publication, NAKA is up 4% during pre-market hours.

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