David Bailey and Bitcoin-Native Holding Company Nakamoto Announce Merger with KindlyMD® to Establish Bitcoin Treasury

On May 12, 2025, KindlyMD, Inc. (NASDAQ: KDLY), a Utah-based healthcare services provider, announced a transformative merger with Nakamoto Holdings Inc., a Bitcoin-native holding company founded by David Bailey. This strategic move positions the combined entity as a pioneer in Bitcoin treasury strategies, leveraging a $710 million capital raise to accelerate institutional adoption of Bitcoin as a reserve asset. The deal marks a pivotal moment in the convergence of traditional finance and cryptocurrency markets, with implications for corporate treasury management and global capital markets.

Deal Rationale and Strategic Vision

The merger represents a bold pivot for KindlyMD, transitioning from a healthcare-focused company to a Bitcoin-centric financial conglomerate. Nakamoto’s vision, articulated by David Bailey, centers on creating the first publicly traded conglomerate designed to integrate Bitcoin into global capital markets through innovative financial instruments. The combined entity aims to accumulate Bitcoin directly and grow per-share Bitcoin holdings (“Bitcoin Yield”) through equity, debt, and hybrid structures[1][2][6].

“Traditional finance and Bitcoin-native markets are converging,” Bailey stated. “The securitization of Bitcoin will redraw the world’s economic map. We believe a future is coming where every balance sheet—public or private—holds Bitcoin. Nakamoto seeks to be the first publicly traded conglomerate designed to accelerate that”[1][6].

Financial Structure and Capital Raise

The transaction includes $710 million in financing, comprising:

This capital raise, the largest for a Bitcoin treasury-focused company to date, attracted over 200 investors across six continents, including institutional players like VanEck, ParaFi, and Arrington Capital, alongside crypto luminaries such as Adam Back, Balaji Srinivasan, and Jihan Wu[1][3][6]. The participation of global investment firms underscores growing institutional confidence in Bitcoin’s role as a reserve asset.

Company Backgrounds and Leadership

Nakamoto Holdings: A Bitcoin-Native Powerhouse

Nakamoto Holdings, founded by David Bailey in partnership with BTC Inc., aims to build a global network of Bitcoin treasury companies. Bailey, a prominent Bitcoin advocate and CEO of BTC Inc. (publisher of Bitcoin Magazine), brings deep expertise in Bitcoin strategy and ecosystem development. His vision for Nakamoto includes creating an ecosystem spanning media, advisory, and financial services to accelerate Bitcoin adoption[1][4][6].

KindlyMD: Transitioning to a Bitcoin-Centric Model

KindlyMD, a healthcare provider focused on integrated medical services and pain management, will retain its operational independence under CEO Tim Pickett. The merger allows KindlyMD to leverage Nakamoto’s Bitcoin expertise while maintaining its core healthcare mission. Pickett emphasized the strategic value of the partnership, stating it enables the company to “expand our mission” and drive long-term shareholder value[1][6].

Synergies and Operational Strategy

Financial Synergies

The combined entity will prioritize Bitcoin accumulation and structured product development. Key strategies include:

• Bitcoin Treasury Growth: Direct purchases of Bitcoin to increase per-share holdings, mirroring the model pioneered by Strategy (formerly MicroStrategy)[4][6]
• Hybrid Financial Instruments: Development of equity, debt, and hybrid structures to securitize Bitcoin for broader market access[1][6]
• Global Expansion: Acquisitions of Bitcoin-native companies in regions like Brazil, Thailand, and South Africa[7]

Strategic Synergies

Nakamoto plans to leverage BTC Inc’s media and advisory network to promote Bitcoin adoption. This includes partnerships with Bitcoin Magazine and global Bitcoin conferences, providing marketing muscle to attract investors and institutional clients[1][6].

Industry Impact and Competitive Landscape

A Growing Trend in Corporate Bitcoin Adoption

Nakamoto’s merger aligns with a broader shift toward Bitcoin as a corporate treasury asset. Recent developments include:

“Bitcoin treasury vehicles are becoming increasingly popular as crypto enters the financial mainstream,” noted CoinDesk, highlighting Nakamoto’s role in this emerging sector[3].

Market Reaction and Investor

Sources

 

https://www.businesswire.com/news/home/20250511707064/en/David-Bailey-and-Bitcoin-Native-Holding-Company-Nakamoto-Announce-Merger-with-KindlyMD-to-Establish-Bitcoin-Treasury, https://bitcoinmagazine.com/news/david-bailey-and-bitcoin-native-holding-company-nakamoto-announce-merger-with-kindlymd-to-establish-bitcoin-treasury, https://www.coindesk.com/business/2025/05/12/david-bailey-s-nakamoto-holdings-going-public-via-merger-with-kindlymd-shares-soar-650, https://cointelegraph.com/news/nakamoto-holdings-kindlymd-bitcoin-treasury-merger, https://www.investing.com/news/stock-market-news/kindlymd-stock-soars-over-600-on-bitcoin-strategy-merger-93CH-4039170, https://www.theblock.co/post/353948/david-baileys-nakamoto-to-merge-with-kindlymd-raise-710-million-to-start-bitcoin-treasury-strategy, https://www.bitdegree.org/crypto/news/david-baileys-300-million-bitcoin-firm-nakamoto-eyes-public-listing, https://coindoo.com/kindlymd-and-nakamoto-holdings-merge-to-launch-bitcoin-treasury-strategy/

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