NAKA Plunges 55% as PIPE Investors Ready Sales

Markets are seeing sharp moves this morning with crypto mining stocks continuing their rally and Tesla jumping on Elon Musk’s latest share purchase.

The largest move is to the downside, with bitcoin treasury company KindlyMD (NAKA) plunging 55% after the PIPE shares for the recently completed SPAC were registered late Friday. The registration is a necessary step for those insiders to begin selling their shares.

Bitfarms (BITF) is up 15% pre-market to $2.55, extending its weekly rally of 75%. AI-focused mining stocks continue their strong performance as well, with IREN (IREN) rising 3% pre-market and up over 230% year-to-date. Hive Blockchain (HIVE) gained 5% pre-market, adding to its 40% rise over the past month.

In a shareholder letter Monday morning, NAKA CEO David Bailey acknowledged the volatility in his company's stock, now lower by 96% from its record high.

"We know resilience and discipline separate those who endure from those who fade," wrote Bailey. "For those shareholders who have come looking for a trade, I encourage you to exit."

Tesla (TSLA) is trading at $420, up 6% from Friday’s close after a 7% surge last week. An SEC filing revealed Elon Musk purchased nearly 2.6 million shares.

While, CapitalB (ALCPB) acquired 48 BTC, bringing its total holdings to 2,249 BTC, up 15% in European markets.

UPDATE: KindlyMD Shareholder Letter on S-3 Filing