David Bailey’s newly established Nakamoto Holdings has merged with healthcare provider KindlyMD to create a global Bitcoin-native financial network. This collaboration aims to build Bitcoin reserve assets and accelerate the integration of traditional finance with Bitcoin-based markets.
The official announcement, made on May 12, outlines plans for Nakamoto Holdings—a company founded by David Bailey, a cryptocurrency advisor to former U.S. President Donald Trump—to partner with BTC Inc. in establishing the world’s first network of Bitcoin reserve companies.
Bailey stated:
“Traditional finance and Bitcoin-native markets are converging rapidly. The securitization of Bitcoin will reshape the global economic landscape. We firmly believe that in the near future, both public and private institutions will include Bitcoin on their balance sheets.”
Not the First Company in the Industry
Similar to the strategy employed by Michael Saylor’s firm, formerly known as MicroStrategy, the newly merged entity plans to use equity, debt, and other financial products to achieve its strategic goals. The official announcement promises that the company will “provide investors with exposure to Bitcoin (BTC) market risks within a compliant and transparent framework.”
Bailey emphasized that the merged company he is set to lead intends to integrate Bitcoin into equity, debt, preferred stock, and “innovative hybrid structures” to position Bitcoin at the core of global capital markets.
He further noted:
“Our mission is clear: to list these financial instruments on major global exchanges.”
Transaction Includes $710 Million in Financing
KindlyMD’s shares will continue trading on the Nasdaq under the ticker symbol “KDLY.” The newly formed company will undergo a rebranding process and adopt a new stock ticker symbol.
The boards of both Nakamoto Holdings and KindlyMD have unanimously approved the transaction. However, the deal still requires approval from KindlyMD’s shareholders.
The transaction includes $510 million in total proceeds from a public equity private placement, priced at $1.12 per share, covering KindlyMD’s common stock and pre-funded warrants. An additional $200 million was raised through the issuance of priority secured convertible bonds due in 2028.
Financing is expected to be completed simultaneously with the merger.
Once the merger is finalized, the new entity will assume all obligations and business partnerships of Nakamoto Holdings, including marketing services provided by BTC Inc.—the publisher of Bitcoin Magazine and the organizer of the annual Bitcoin Conference.
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Frequently Asked Questions
What is the goal of the Nakamoto Holdings and KindlyMD merger?
The merger aims to create a global Bitcoin-native financial network that integrates Bitcoin into traditional capital markets through equity, debt, and innovative financial structures. The goal is to make Bitcoin a core asset on institutional balance sheets.
How will the merger affect KindlyMD’s stock?
KindlyMD’s stock will continue to trade on Nasdaq under the ticker “KDLY” until the merger is complete. Afterward, the company will rebrand and adopt a new ticker symbol.
What role does BTC Inc. play in this merger?
BTC Inc., known for publishing Bitcoin Magazine and hosting the Bitcoin Conference, will provide marketing services to the newly merged entity. This partnership supports the broader goal of promoting Bitcoin-based financial products.
Is this merger similar to MicroStrategy’s Bitcoin strategy?
Yes, the approach is similar to MicroStrategy’s in that it uses corporate financial instruments to gain Bitcoin exposure. However, Nakamoto Holdings aims to create a broader network of Bitcoin-reserve companies and list new financial products on global exchanges.
What are the financial details of the merger?
The transaction includes $510 million from a private placement of equity and $200 million from convertible bonds. The financing is structured to be finalized alongside the merger.
Will shareholders need to approve the merger?
Yes, the merger requires approval from KindlyMD’s shareholders before it can be completed. The boards of both companies have already given unanimous support.