Shares of KindlyMD, a healthcare company, surged by 600% this morning following the announcement of a merger with Nakamoto Holdings, a Bitcoin investment firm founded by David Bailey, a prominent cryptocurrency advisor to former President Donald Trump. While the stock price has since dropped, it remains up by 470% over the past 24 hours.
Details of the Merger and Capital Injection
The merger deal includes a significant $710 million in new capital, which comprises $200 million in convertible debt and $510 million from a private investment in public equity (PIPE) round. The PIPE offering includes shares priced at $1.12 each, with more than 200 investors backing the deal. Notable names participating in the funding round include Van Eck, Arrington Capital, BSQ Capital Partners, Kingsway, and Yorkville Advisors.
After the merger, KindlyMD will retain its “KDLY” ticker symbol temporarily but plans to rebrand with a new name and stock symbol. David Bailey, the founder of Nakamoto Holdings, will assume the role of CEO following the merger. Bailey expressed his vision for the future, stating, “We believe a future is coming where every balance sheet – public or private – holds Bitcoin.”
Nakamoto’s Vision for Bitcoin in Traditional Markets
Bailey, who co-founded BTC Inc., the parent company behind Bitcoin Magazine and major Bitcoin conferences, emphasized Nakamoto Holdings’ ambition to bring Bitcoin into the mainstream of global capital markets. The company plans to develop products such as equity, debt, and preferred shares backed by Bitcoin, aiming to make these instruments accessible to traditional investors. Bailey further revealed that Nakamoto intends to list these Bitcoin-backed financial products on major stock exchanges worldwide.
KindlyMD’s Ongoing Mission and Leadership Transition
Tim Pickett, CEO and founder of KindlyMD, will continue to lead the healthcare side of the company after the merger. He confirmed that the company will maintain its focus on treating opioid addiction and providing holistic care, marking a strategic expansion into the Bitcoin space.
While the merger has received approval from both companies’ boards, it is still subject to approval from KindlyMD’s shareholders. Legal and financial advisors involved in the transaction include Cohen & Company Capital Markets, 10X Capital, Reed Smith LLP, and Loeb & Loeb LLP.
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