Recent private investment in public equity (PIPE) transactions by Bitcoin-focused firms have faced significant challenges, with stock prices of KindlyMD (NAKA) and Strive (ASST) plummeting over 90% post-deal. NAKA, which raised $763 million including $563 million in a PIPE to purchase Bitcoin, saw its stock price fall from $30 to $0.80. Similarly, ASST raised $750 million through a PIPE at a 121% premium to acquire 5,885 Bitcoin, but its stock dropped from $12 to approximately $1.
The dramatic decline in stock prices has resulted in both companies' price-to-book ratios falling below 1, raising concerns among investors, including Cantor Equity Partners and Bitcoin Standard Fund Management. These developments highlight the risks associated with PIPE deals in the volatile cryptocurrency market.
Bitcoin PIPE Deals Falter as NAKA and ASST Stocks Plunge Over 90%
Disclaimer: The content provided on Phemex News is for informational purposes only. We do not guarantee the quality, accuracy, or completeness of the information sourced from third-party articles. The content on this page does not constitute financial or investment advice. We strongly encourage you to conduct you own research and consult with a qualified financial advisor before making any investment decisions.