Kindly MD (NAKA) has delayed its quarterly earnings release, citing the extensive accounting work required to finalize financials tied to its August merger with Nakamoto Holdings. The postponement added to market pressure on the stock, which continued to slide on Monday.
In an SEC filing, the company said it will miss the deadline for submitting its Form 10-Q for the quarter ended Sept. 30 but expects to complete the report within the standard five-day grace period allowed by regulators.
The merger marked a strategic shift for Kindly MD, which moved away from its roots in healthcare services to become a publicly traded bitcoin treasury vehicle through its tie-up with David Bailey’s Nakamoto Holdings. The combined company now holds 5,765 BTC, ranking it among the largest corporate bitcoin treasuries.
Kindly MD said the “complexity of accounting related to the Merger,” including applying U.S. GAAP standards and completing PCAOB-level review procedures, requires additional time to ensure its financial statements are accurate and complete.
Preliminary figures indicate significant losses tied to the transaction and digital-asset volatility: roughly $1.41 million in realized losses, $22.07 million in unrealized losses, a $14.45 million charge for extinguishing debt, and a $59.75 million loss related to the Nakamoto acquisition. A $21.85 million gain from revalued contingent liabilities helped offset some of these charges.
Shares of NAKA fell 7% to $0.57 as investors reacted to the reporting delay and the scope of the anticipated losses.
