KindlyMD Delisting Risk Signals Trouble for Bitcoin Treasury Firms

Bitcoin treasury company KindlyMD is facing a serious risk of being removed from the Nasdaq stock exchange. The company received a notice after its share price stayed below the required level for too long. This situation puts pressure on the firm and raises concerns among investors.

KindlyMD now has until June 8, 2026, to fix the issue. If it fails, Nasdaq may delist the stock.

Share Price Falls Below Nasdaq Rules

Nasdaq has strict rules for companies listed on its exchange. One key rule requires a company’s stock to trade at $1 or higher. The price must stay above that level for at least 10 consecutive trading days.

KindlyMD failed to meet this requirement. Its shares traded below $1 for more than 30 days. As a result, Nasdaq sent the company a formal warning.

At the time of the notice, KindlyMD’s stock was trading at well under $1. This sharp drop shows weak market confidence and low investor demand.

What KindlyMD Must Do Next

KindlyMD still has time to regain compliance. The company must push its share price back above $1 and keep it there for 10 straight trading days before the deadline.

To do this, the firm may take several steps. These include improving business performance, attracting new investors, or carrying out a reverse stock split. A reverse split reduces the number of shares while raising the price per share.

Company leaders have not yet confirmed which option they will choose. However, action will be necessary if they want to keep their Nasdaq listing.

Why Delisting Matters to Investors

If KindlyMD’s delisting risk proceeds, the stock could move to over-the-counter (OTC) markets. Stocks traded on OTC markets often see lower trading volume and less investor interest.

Many large investors avoid OTC stocks. Some trading platforms also restrict access to them. This can make it harder for shareholders to buy or sell their holdings.

For retail investors, delisting often brings higher risk and less transparency.

Bitcoin Treasury Strategy Under Pressure

KindlyMD’s delisting risk also highlights the risks of holding Bitcoin as a treasury asset. While some firms benefit from Bitcoin exposure, others suffer during market downturns.

This case shows how crypto-focused strategies can clash with traditional stock market rules. As regulators and exchanges tighten standards, similar firms may face the same challenge.

For now, all eyes are on KindlyMD’s next move, and whether it can meet Nasdaq’s deadline in time.