Shares of KindlyMD skyrocketed 250% Monday after the healthcare company announced a merger with Nakamoto Holdings, a bitcoin investment company founded by David Bailey, a key cryptocurrency advisor to President Donald Trump.
The newly formed company has secured $200 million in convertible debt and $510 million in fresh capital through a private investment in public equity (PIPE) deal, offering shares at $1.12 each.
According to Bailey, the convertible note carries a premium to the PIPE price, with investors buying shares at $1.12, but the notes will convert at $2.80. He added that the notes are zero-coupon for the first two years.
Since news of the fund broke on Wednesday, the project has attracted hundreds of millions of dollars in additional commitments, Bailey said.
“I’ve been raising about $100 million a day,” Bailey told CNBC. “Yesterday, I raised almost $200 million.”
The raise drew support from more than 200 investors, including Actai Ventures, Arrington Capital, BSQ Capital Partners, Kingsway, Van Eck, and Yorkville Advisors.
The roster of individual investors reads like a who’s who of bitcoin — cryptographer Adam Back; Balaji Srinivasan, a former Coinbase executive; Jihan Wu, co-founder of Bitmain; and Ricardo Salinas, the Mexican billionaire who has become one of bitcoin’s most vocal supporters.
Constantine Karides, chair of Reed Smith’s Crypto & Digital Assets Group, was lead counsel on the deal. He called it a “transformational transaction,” noting that “bitcoin’s emergence as a treasury asset is a natural evolution.”
“In capital markets, we’re seeing strong adoption of alternative and innovative transaction structures that fully embrace blockchain and digital assets enabled by new technologies,” Karides said.
But KindlyMD’s foray into crypto is even stranger, given that the company built its brand around combating opioid addiction with holistic health services.
Bailey said his team was searching for “the right vehicle” to take Nakamoto public, and KindlyMD’s leadership team was already full of bitcoin enthusiasts.
“They believed in the strategy,” Bailey said. “What KindlyMD will look like in the future will be different than what it looks like today.”
He confirmed that the combined company plans to rebrand, change its ticker from “KDLY,” and begin acquiring bitcoin-native companies to build a global network of bitcoin holdings.
According to Bailey, the vision is to build a global network of bitcoin-focused businesses, with the healthcare operation eventually playing a smaller role.
“This merger represents a strategic leap for KindlyMD, allowing us to expand our mission,” said Tim Pickett, CEO of KindlyMD. “Nakamoto brings in a team with deep expertise in Bitcoin strategy and unparalleled access to the leading experts in bitcoin treasury management.”
Pickett, who will continue to oversee KindlyMD’s healthcare operations, insisted that the clinics will maintain their focus on treating opioid addiction and offering patient-first care.
“It’s a bold new vision that will drive long-term value for our shareholders,” added Pickett.
Bitcoin was trading above $102,000 Monday afternoon, having surged past $100,000 on Thursday for the first time since February.
Nakamoto, led by Bailey as CEO, will focus on acquiring and holding bitcoin — a strategy that has become popular among investment firms seeking to turn their stock into a direct bet on the cryptocurrency’s price.
“Our total focus is on increasing the bitcoin per share,” Bailey told CNBC. “We’re selling one bitcoin for more than a bitcoin, or we’re buying a bitcoin for less than a bitcoin.”
Bailey isn’t the first to chase this model. Michael Saylor’s Strategy (formerly MicroStrategy) transformed itself from a software company into a de facto bitcoin holding firm in 2020, converting its cash reserves into bitcoin and watching its stock skyrocket as bitcoin’s value surged.
But Bailey describes his vision as “Strategy, squared.” Rather than simply holding bitcoin, Nakamoto aims to actively acquire and create bitcoin treasury companies in “every capital market on the planet.”
Bailey pointed to existing deals in Hong Kong, India, Canada, and the United Kingdom. The company is also in talks with partners in Saudi Arabia, Bahrain, the UAE, the Netherlands, Taiwan, and Argentina.
Bailey’s influence extends beyond business. He has visited the White House at least six times since Trump took office, including a trip just last week, according to a person familiar with the matter. His role has positioned him among a cohort of cryptocurrency experts advising on digital asset policy.
“I’m a massive supporter. I’m a believer in him and his family and his administration,” Bailey told CNBC. “The President has delivered on all the promises he made to the bitcoin industry… and I’m eternally grateful.”
When asked about his role, Bailey was clear: “When called upon, I provide the best feedback or counsel I can on bitcoin.”
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