Corporate Bitcoin Treasuries and the Market Reaction to Stocks
Date: 2025-09-17 Author: Henry Casey Categories: CRYPTO PAYMENTS
Next Technology Holding announced plans to raise up to $500 million through a stock offering to fund corporate needs, including the purchase of Bitcoin. According to SEC filings, the funds will be used "for general corporate purposes, including, but not limited to, the acquisition of BTC." The company already holds 5,833 Bitcoin, worth nearly $674 million, placing it among the top 20 corporate holders of the cryptocurrency. Despite this, investors reacted cautiously to the news: NXTT shares fell 4.79% to $0.14.
Similarly, KindlyMD, a Nasdaq-listed healthcare company, has partnered with Nakamoto Holdings to create a Bitcoin treasury. NAKA shares plunged more than 55%, closing at $1.24, despite a slight gain in the pre-market session. The company's shares have lost nearly 73% over the past five days, and over 90% over the past month.
KindlyMD CEO David Bailey explained in a letter to shareholders that the sharp fluctuations were due to the launch of a new batch of shares through PIPE financing. He emphasized that short-term traders could temporarily impact the price, but the company is focused on long-term goals and strengthening its relationship with shareholders. According to Bailey, these measures will help the company navigate this period of volatility with greater investor support.
Nevertheless, the share price decline has drawn criticism from prominent skeptics, including economist Peter Schiff. He noted that companies with bitcoin treasuries are inherently high-risk and compared them to Ponzi schemes. NAKA, according to his observations, has fallen 96% since its peak in May, which coincided with a major Bitcoin conference in Vegas.
The events with NXTT and NAKA reflect the difficulties companies face in integrating Bitcoin into corporate assets. Despite cryptocurrency proponents' confidence in long-term growth, the sharp fluctuations in the stock price highlight market skepticism and the high volatility of such strategies. Investors continue to react cautiously to these innovations, assessing the balance between the potential for returns and the risks inherent in digital assets.
These examples demonstrate that corporate Bitcoin treasuries remain a controversial capital raising tool and require careful analysis by both companies and investors.
