Shares of Kindly MD (NAKA) fell sharply after the company announced it would miss the November 14 deadline for its third-quarter earnings report. The delay stems from complex accounting challenges following its recent merger with Nakamoto Holdings, with preliminary figures revealing a $59 million loss on the acquisition and significant losses on its digital asset holdings.

Accounting Complexities Trigger Delay

In a notice filed with the Securities and Exchange Commission (SEC), Kindly MD stated it required more time to complete the accounting for its August 2025 merger. The company, which transitioned from healthcare services to a bitcoin treasury vehicle, cited the difficulties of applying U.S. Generally Accepted Accounting Principles (GAAP) to the transaction. While the company expects to file within the five-day extension period, the announcement unsettled investors.

Preliminary Figures Reveal Steep Losses

The filing painted a grim financial picture, outlining several substantial losses. Kindly MD expects to report a $59 million loss on the Nakamoto acquisition, indicating the company paid significantly more than the fair value of the assets it acquired.

Compounding the issue are losses tied to its crypto strategy. The company anticipates a $22.07 million unrealized loss on its bitcoin holdings and a $1.41 million realized loss from digital assets it sold during the quarter. A further $14.45 million loss resulted from debt restructuring. These figures were only partially offset by an expected $21.85 million gain from a change in the fair value of contingent liabilities.

Market Reaction and Strategic Pivot

Following the news, NAKA shares dropped between 7% and 10% in a single session to a range of $0.55 to $0.57. This continues a punishing trend for the stock, which has declined 95% over the past six months. The missed deadline also exposes the company to increased regulatory scrutiny from the SEC.

The merger with Nakamoto Holdings, led by new CEO David Bailey, was intended to transform Kindly MD into a premier publicly traded vehicle for bitcoin investment. The company currently holds 5,765 BTC, making it the 19th largest corporate bitcoin treasury. However, its first quarter post-merger has been defined by mounting losses and reporting delays, raising concerns about the execution of its new strategy.

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