KindlyMD Moves to Buy Back Stock as Shares Trade Well Below Its Bitcoin Hoard

Buyback announced; company and Coindesk reports put the move in context

KindlyMD said this week it authorized a program to repurchase its own shares, a move the company framed as closing a gap between the market price and the value of its bitcoin holdings. The announcement came in a company statement and related regulatory filing, and was reported by Coindesk.

The company did not couch the program as a long-term strategic shift. Instead, management described it as a straightforward capital-return tool to take advantage of what they called a “material discount” between the stock and the underlying crypto on the balance sheet. The filing and the press coverage are the sources for the buyback details summarized below.

Market reaction: heavy selling set the stage for the move

Shares fell sharply into the buyback announcement, leaving a large chunk of market value wiped out over recent sessions. Volume spiked as traders and short sellers piled in, creating the very discount management said it wanted to address.

The pattern mirrors episodes at other publicly traded bitcoin-treasury firms — for example, MicroStrategy (MSTR) and Marathon Digital (MARA) — where crypto price swings and sentiment shifts drove outsized stock moves. In KindlyMD’s case, the market-cap decline was pronounced enough that management judged a buyback could be a credible way to support the share price and narrow the valuation gap.

What the buyback actually allows — size, funding and mechanics to watch

The company authorized a repurchase program, but readers should look in the company’s filing to see the exact limits and method. Typical items to check in the filing include whether repurchases will be done in open-market trades, by tender offer, or by accelerated share repurchase; the maximum dollar amount or number of shares authorized; the announced time frame for the program; and whether spending is limited by available cash or requires selling bitcoin or drawing on credit.

At this writing I don’t have live access to the filing text, so I can’t quote an exact authorization number here. The filing and the company statement reported by Coindesk are the primary sources. Investors should check whether the board set an explicit cap, whether the company said it would fund purchases with cash on hand or by disposing of crypto, and whether any lender covenants limit buybacks.

Balance-sheet math: how to think about bitcoin holdings, NAV per share and the size of the discount

Crunching the valuation is straightforward in method, even if you don’t have every number in front of you. The key line items are: bitcoin holdings (BTC amount and the date reported), cash and debt on the balance sheet, and shares outstanding. Those together give a net-asset-value (NAV) per share implied by the balance sheet.

Because I can’t fetch the latest filings in real time here, I’ll show the simple arithmetic with a clear example you can apply to the exact numbers in the company’s SEC filing:

• Assume KindlyMD holds 5,000 BTC (replace with the company’s reported number).
• If bitcoin trades at $50,000 in your calculation, those BTC equal $250 million.
• Add cash and other liquid assets; subtract debt. Suppose net cash is $10 million.
• So total net assets = $260 million. Divide by shares outstanding — say 50 million shares — to get an NAV of $5.20 per share.
• If the stock trades at $3.00, that’s about a 42% discount to the NAV in this hypothetical example.

How a buyback moves the NAV: if the company spends $20 million to repurchase shares at market price, it reduces cash (or sells BTC) by that amount and also reduces the share count. In our example, a $20 million repurchase at $3 would retire ~6.67 million shares, shrinking the float and lifting NAV per remaining share — the exact effect depends on whether the buyback is funded from cash or by selling crypto and on the purchase price.

Use the company’s reported BTC quantity, latest cash/debt figures and current BTC price to run the same numbers. The math is simple; the judgment is how big a buyback must be to meaningfully narrow the discount.

What this means for investors — catalysts, liquidity and likely outcomes

A buyback can do three things. First, it signals management thinks the stock is cheap and that shares bought back are a good use of capital. Second, it can reduce free float and make the share price more sensitive to supply-demand swings. Third, it can create a floor under the stock in the near term if purchases are sizable and steady.

Investors should watch for validation signals: consistent open-market purchases at or below the market price, an announced cap large enough to affect the float, or simultaneous actions such as improved disclosure on BTC holdings (audits, custody details) or a clearer capital-allocation plan. If the buyback is tiny versus the float, it will be little more than a headline and unlikely to change the fundamental discount.

Key risks and next items to watch — regulatory, accounting and execution pitfalls

Main risks include bitcoin’s price volatility, which can swing NAV per share independent of buyback activity; execution risk if the authorized amount is small relative to the share count; and accounting or tax complications if management funds repurchases by selling BTC at inopportune times.

Watch the next regulatory filings closely for: the exact dollar cap or share limit; whether repurchases will be funded with cash or sales of crypto; any changes to custody or auditor language for BTC; and updates to short-interest, which can magnify volatility. Also check whether the board limited the time window or left it open-ended.

Bottom line: the buyback is a sensible, well-worn tool for a company whose market price is materially below the value of crypto on its balance sheet — but its effectiveness depends entirely on size, funding and follow-through. Investors should treat the headline as a conditional positive: potentially helpful, but only if management backs the talk with real, sustained purchases.