x
As if the crypto industry has already not been beset by the concerns of the largest Bitcoin (BTC) treasury, Strategy (Nasdaq: MSTR), getting delisted from a leading stock market index, another popular Bitcoin company is now facing the risk of getting delisted from Nasdaq.
Kindly MD (Nasdaq: NAKA) revealed in its Dec. 10 filing with the Securities and Exchange Commission (SEC) that the Bitcoin treasury company has received a delisting notice from Nasdaq because its shares failed to trade above the exchange's minimum bid threshold of $1 for the previous 30 consecutive business days.
Related: MicroStrategy retains place in key index despite delisting threats
Under Nasdaq Listing Rule 5810(c)(3)(A), the Bitcoin treasury can regain compliance within 180 calendar days by June 8, 2026.
The company's shares should trade above the $1 price mark for at least 10 consecutive trading days during the six-month period so that it can escape the delisting risk. Nasdaq may extend the requirement to 20 days.
If the company can't regain Nasdaq compliance within the six-month period, it can transfer its listing to the Nasdaq Capital Market for an extension of the deadline.
If the company can't regain compliance even then, Nasdaq could delist the company.
Kindly MD clarified that the latest notice has no bearing on the stock right now and it is still trading under the ticker “NAKA”.
A healthcare firm, Kindly MD merged with popular crypto entrepreneur David Bailey's Bitcoin company Nakamoto Holdings Inc. in mid-May to turn into a Bitcoin treasury company.
As per BitcoinTreasuries, the company holds 5,398 BTC, valued at more than $473 million at press time, on its balance sheet.
But the company's financing model, relying heavily on selling discounted shares in private investment in public equity (PIPE) for Bitcoin acquisitions, has proven to be sustainable.
The company's stock is nearly 100% since mid-June and was trading at $0.3810 at the time of writing.
