KindlyMD Stock Crashes 55% Following CEO’s Shocking Exit Urge to Traders

Another day, another CEO-induced market meltdown—because apparently telling your own investors to run for the hills is now a valid corporate strategy.

KindlyMD's CEO dropped the ultimate sell signal, triggering a 55% freefall in the stock. Who needs short sellers when the boss does their job for them?

Traders scrambled for exits as confidence evaporated faster than a meme coin's utility. The move raises serious questions about leadership stability and forward guidance—or lack thereof.

Just another reminder that in traditional markets, sometimes the biggest risk isn't the market itself—it's the people running the show.

Shareholder letter triggers mass exit

In a letter to shareholders, Bailey addressed the anticipated price swings due to a recent $200 million private investment in public equity (PIPE) offering, which enabled discounted shares to be freely traded on the market. Bailey stated:

“For those shareholders who have come looking for a trade, I encourage you to exit.”

Following this advice, investors drove KindlyMD’s share price down to $1.24, its lowest level since early February, before a minor after-hours rebound.

The PIPE deal is expected to increase volatility as newly registered shares enter the market.

Strategy to attract long-term holders

Bailey emphasized that the current period of uncertainty is intended to transition the company’s shareholder base toward long-term, mission-aligned investors. He wrote:

“This transition may represent a point of uncertainty for investors, and we look forward to emerging on the other side with alignment and conviction amongst our backers.”

Bailey also noted on X that nearly 80 million shares traded that day, describing it as a “day of transition” for the company.

Market cap falls below bitcoin holdings

The sharp decline in KindlyMD’s stock brought its market capitalization below the value of its bitcoin treasury.

The company currently holds 5,765 BTC—worth over $665 million—while its market cap dropped to $466 million.