Kindly MD’s $5 Billion Bitcoin Move Could Hurt Altcoins
Healthcare company Kindly MD, which is listed on Nasdaq, has filed with the U.S. SEC to sell up to $5 billion worth of stock. The money raised will support the company’s growth after it recently spent $679 million to buy Bitcoin.
In its filing, Kindly MD said:
“Bitcoin will be our main treasury reserve asset. We plan to keep building a long-term Bitcoin position.”
By filing as a Well-Known Seasoned Issuer (WKSI), the company now has more freedom to raise capital. The stock sale will be handled by big financial firms like Cantor Fitzgerald, TD Securities, B. Riley Securities, and Canaccord Genuity in Canada.
Last week, the company revealed its Bitcoin purchase was made through its unit, Nakamoto Holdings. It said the move shows strong belief that Bitcoin is the “ultimate reserve asset” for businesses and institutions.
Experts say this strategy has pros and cons:
- Advantage: WKSI status makes it easier for a company to raise money.
- Risk: Large stock issuances during volatile markets can be dangerous.
The Impact on Altcoins
Analysts believe this trend could hurt other cryptocurrencies (altcoins).
According to Kelvin Koh of Spartan Group, since the approval of U.S. Bitcoin ETFs in 2024 and pro-crypto policies from the Trump administration, many institutions have become more open to holding Bitcoin.
However, Koh warned that this heavy focus on Bitcoin could mean less attention and liquidity for altcoins.
In a recent paper, Koh explained that Digital Asset Treasuries (DATs)—companies raising money to buy crypto—are mostly focused on Bitcoin. While this brings liquidity to Bitcoin, it could also make the overall crypto market fragile if too many companies follow the same approach.
“When hundreds of firms do this at the same time, it could increase risks and make markets unstable,” Koh said.
