Shares of KindlyMD Inc., a healthcare company with a significant Bitcoin treasury, plummeted over 55% following a shareholder letter warning of increased volatility, with the stock reaching its lowest since February amid record trading volumes.

The decline was triggered by CEO David Bailey's advice for short-term traders to sell if seeking quick profits, signaling a shift to attract long-term investors and emphasizing the company's strategic focus.

Bailey expressed strong confidence in Bitcoin's long-term viability, citing its resilience through past bear markets and its growing mainstream adoption, now regarded as a trillion-dollar asset held by institutions and individuals worldwide.

He reaffirmed his belief that Bitcoin will become integral to global finance, with every major capital market recognizing the need for exposure as part of long-term growth.

The company’s recent PIPE deal, aimed at increasing volatility, is designed to establish a base of committed, long-term shareholders, which Bailey views as a strategic opportunity despite current market turbulence.

Since adopting its Bitcoin strategy, KindlyMD has raised $742 million, accumulated over 5,700 BTC, and partnered with major financial institutions for a $5 billion ATM program, reinforcing its long-term vision.

Currently, KindlyMD ranks as the 16th-largest corporate Bitcoin holder with 5,765 BTC, amidst broader pressures in the Bitcoin treasury market.

The company’s market value and its multiple of net asset value (mNAV) have declined, reflecting recent share issuance and investor sentiment, but Bailey remains optimistic about future growth and shareholder alignment.

Bitcoin’s price has recently increased by 2% over the past week, indicating some resilience amid ongoing bearish conditions.

The stock's decline coincided with a merger between KindlyMD and Nakamoto Holdings, creating a Bitcoin-native holding company, with Nakamoto operating as a subsidiary.

The $200 million discounted share sale through a PIPE deal, which allows free trading of shares, was a key factor in the recent stock decline, prompting Bailey’s advice for short-term traders to exit.

Bailey emphasized the company's mission to become a leading Bitcoin-native financial institution, focusing on long-term strategy, creative thinking, and disciplined execution despite short-term market turbulence.