Shares of KindlyMD soared by 250% on Monday following the announcement of its merger with Nakamoto Holdings, a bitcoin investment company founded by David Bailey, a prominent figure in the cryptocurrency sector and advisor to former President Donald Trump. The new entity has secured $200 million in convertible debt and raised an additional $510 million through a private investment in public equity (PIPE) deal, with shares offered at $1.12 each. The convertible notes will convert at $2.80 and feature a zero-coupon structure for the first two years, indicating investor confidence in long-term value.
Bailey noted strong investor enthusiasm, with the project attracting over $100 million daily, and nearly $200 million raised in a single day. The financing round drew participation from more than 200 investors, including well-known firms like Actai Ventures, Arrington Capital, BSQ Capital Partners, Kingsway, Van Eck, and Yorkville Advisors. Individual backers included bitcoin industry heavyweights such as cryptographer Adam Back, Balaji Srinivasan, Jihan Wu, and Ricardo Salinas.
The legal work was led by Constantine Karides, chair of a top crypto and digital assets legal team, who praised the merger as a landmark transaction that reflects the evolving landscape of capital markets and the rising role of digital assets. While KindlyMD built its reputation as a healthcare company focused on opioid addiction treatment, its leadership was reportedly enthusiastic about the merger and the potential for a broader strategic shift.
David Bailey emphasized that the future of KindlyMD will be markedly different. The merged company intends to rebrand, change its ticker symbol from “KDLY,” and pivot toward acquiring bitcoin-native businesses globally. The company envisions building a worldwide network of bitcoin-focused operations, with the healthcare side eventually becoming a smaller component.
Tim Pickett, KindlyMD’s CEO, affirmed that the company will continue to deliver care focused on opioid recovery while embracing a larger mission. He described the merger as a bold move that brings access to a wealth of bitcoin expertise and opens new opportunities for growth.
Bitcoin traded above $102,000 on Monday, continuing its upward momentum since breaking past the $100,000 mark the previous week. Bailey stated that Nakamoto Holdings will focus on increasing the “bitcoin per share” metric by acquiring bitcoin assets and companies globally. His goal is to replicate and expand on models pioneered by earlier adopters, aiming for a strong presence in capital markets worldwide.
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