Core Viewpoint - Hengyue Holdings (01723) expects to report a loss attributable to shareholders of approximately HKD 190 million to HKD 200 million for the six months ending September 30, 2025, compared to a profit of HKD 691,000 for the six months ending September 30, 2024 [1] Financial Performance - The shift from profit to loss is primarily attributed to the preliminary recognition of a convertible note derivative instrument issued and converted on May 23, 2025, amounting to approximately HKD 193 million [1] - The board believes that issuing convertible notes is an appropriate way to provide additional working capital for the company [1] Impact on Operations - The loss is a one-time non-cash event arising from accounting treatment under applicable standards and does not adversely affect the company's operations or cash flow [1]

Core Insights - KindlyMD's Nakamoto (NAKA) experienced a significant decline of over 55% on September 15, trading below the value of its bitcoin holdings, with a market cap now at approximately $466.4 million, which is a 43% discount to its bitcoin assets valued at $665.8 million [1][4]. Group 1: Market Activity - The selloff was triggered by the effectiveness of a Form S-3 resale registration on September 12, allowing PIPE investors to sell stock in the open market [2]. - The PIPE investors include those from a $51.5 million PIPE priced at $5.00 per share completed in June, and a larger initial PIPE at $1.12 per share from May [2]. Group 2: Financial Developments - Nakamoto's capital build began with a merger agreement in May, which included approximately $511.7 million of initial PIPE commitments at $1.12 per share, followed by the $51.5 million add-on at $5.00 in June [3]. - On August 15, the company closed a $200 million senior secured convertible note with an initial conversion price of $2.80 per share [3]. - The company executed its first post-merger purchase of 5,743.91 BTC for about $679 million on August 19, and established a $5 billion at-the-market program on August 26 [3].