NXTT, the next technology holding stock, saw a small loss after the company announced plans to acquire additional Bitcoin (BTC) and raise $500 million for other corporate purposes.
It’s not just Bitcoin finance companies under pressure. KindlyMD’s Naka shares fell more than 55% after the CEO warned investors about an expected increase in “stock price volatility.”
Next high-tech holding plan offers $500 million, stocks decline
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In the form of an S-3 filing with the Securities and Exchange Commission, the company disclosed its plans to sell up to $500 million in common stock through one or more offers. It noted that the funds raised will be allocated to general corporate activities, including the acquisition of Bitcoin.
“We intend to use net proceeds from the sale of securities provided under this prospectus, including but not limited to the acquisition of Bitcoin,” the filing reads.
This decision coincides with a broader trend of companies increasing their exposure to digital assets, and Bitcoin remains the most prominent option. According to Bitcoin Treasuries, the next technology itself is already one of BTC’s top 20 corporate holders, with 5,833 coins worth $673.96 million.
Nevertheless, the announcement did not instill investor trust. Yahoo Finance data showed NXTT stocks fell 4.79% to $0.14.
KindlyMD shares crash 55% after Pipe Shares crashes into the market
On the other hand, the set-off of the following technologies is not separate. KindlyMD, a medical company listed on NASDAQ, merged with Nakamoto’s holdings to establish the Bitcoin Ministry of Finance, which saw even greater losses.
Naka exceeded 55% and the stock closed at $1.24. In pre-market trading, the stock saw a small boost of around 4%, but this was not enough to reverse the loss.
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Decline is part of a wider downward trend. Over the past five days, the stock has soaked nearly 73%, dropping by 90.9% per month.
But what causes the latest drops? In a shareholder’s letter released Monday, KindlyMD CEO David Bailey explained that volatility is expected to increase as new stocks enter the market.
“On Friday, September 12th, I filed Form S3 to register shares sold through pipe funding. We expect that stock price volatility could increase for a period of time as these shares enter the market,” Bailey said.
Still, the CEO highlighted it as an opportunity to strengthen the company’s foundation along with shareholders who share a long-term vision. He encouraged short-term traders to step aside, noting that the coming weeks and months are crucial in uniting dedicated supporters.
He said the company is well prepared to advance its strategy and has emerged from this period with greater consistency and belief among investors.
Bailey’s comments are confident in the project, but the sharp swing of stocks highlights ongoing concerns about stock performance related to cryptocurrency. This is an inherently unstable sector. This decline has also attracted a great deal of criticism from famous economist and known BTC critic Peter Schiff.
“From the start, we warned that Bitcoin finance companies are Ponges built in the pyramid. Today, one of these companies, Naka, has dropped by 55%. Stocks have now dropped by 96% since their May high, which coincided with the Bitcoin Conference in Vegas.
These developments highlight the challenges of companies pivoting to Bitcoin’s Treasury. While supporters argue that long-term value will occur, the recent stock decline suggests market skepticism about the risks associated with rapid expansion.
