Key Takeaways
- Nakamoto and KindlyMD will merge and raise $710 million for a bitcoin treasury strategy.
- The deal includes a $510M PIPE and $200M in convertible notes — the largest for any public bitcoin treasury company.
- David Bailey will serve as CEO, and the new entity will keep KindlyMD's healthcare arm operational.
Bitcoin-native holding company Nakamoto, founded by Bitcoin Magazine CEO David Bailey, has announced a merger with healthcare firm KindlyMD.
The move aims to launch a large-scale public bitcoin treasury strategy and raise $710 million in funding.
Financial details
The deal includes a $510 million private investment in public equity (PIPE) and $200 million in convertible notes, the largest capital raise ever for a bitcoin treasury company.
Both financing packages are expected to close concurrently with the merger.
Leadership & strategy
David Bailey, who will lead the combined company as CEO, said:
Traditional finance and bitcoin-native markets are converging… Nakamoto seeks to be the first publicly traded conglomerate designed to accelerate that.
The strategy focuses on increasing “Bitcoin Yield” — or the amount of bitcoin owned per share — through various financial instruments.
The merged entity will maintain KindlyMD’s healthcare operations while advancing Nakamoto’s bitcoin-centric goals.
Strategic implications
KindlyMD CEO Tim Pickett described the move as a “strategic leap” for the company, adding that Nakamoto’s expertise in bitcoin strategy would…
… drive long-term value for our shareholders.
Board and trading information
The board of the new company will include six directors appointed by Nakamoto and one by KindlyMD.
Shares will continue trading under the Nasdaq ticker “KDLY” until the merger closes, after which a new name and ticker will be adopted.
Industry context
More than 70 companies have adopted some form of bitcoin treasury strategy, joining a growing list that includes Bitfinex, Tether, and SoftBank.
