Nidhögg the Bleeding is the upgraded form of Nidhögg using the Bloodstone. Like all upgraded-weapons that use Bloodstone, their hit effect is damage increased by 0.2% for every HP the player is missing (not the percentage missing).
An upgraded Nidhögg will NOT keep its upgrade level when it is modified using gemstones.
Total cost for the fully upgraded sword is 1 Nidhögg, 42 Flametal and 6 Bloodstones. However, it is only 6 flametal and 1 bloodstone for level 2, which is the highest upgrade currently obtainable as of patch 218.15.
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Attention: The bloodstone effect work with MISSING health, -1 Health = 0.2% + Damage.