Bitcoin (BTC) Supply Shock Incoming: Nakamoto Holdings and KindlyMD Merges to Form a $710M BTC Treasury Vehicle

The supply of Bitcoin on centralized exchanges has exponentially declined in the past few years.

KindlyMD, Inc. (NASDAQ:KDLY), an established provider of integrated healthcare services, on Monday announced a definitive merger with David Bailey’s Nakamoto Holdings to form a publicly traded bitcoin treasury vehicle.

After the merger, KindlyMD will be renamed and focused on investing in bitcoin. The company also obtained a $710 million fully committed financing package to fund the bitcoin treasury investments.

The integration of KindlyMD's capital markets expertise with Nakamoto's institutional bitcoin treasury management experience is poised to create a unique and valuable offering for investors.

“We are excited to combine forces with KindlyMD to launch a next-generation treasury vehicle that will unlock tremendous opportunities for investors. At Nakamoto, our vision is to bring bitcoin to the center of global capital markets, packaging it into equity, debt, preferred shares, and new hybrid structures that every investor can understand and own. Our mission is simple: list these instruments on every major exchange in the world,” said David Bailey, Founder and CEO of Nakamoto.

As the world's premier cryptocurrency, bitcoin is an excellent hedge against inflation and macroeconomic uncertainty. With its decentralized nature and immutable ledger, bitcoin offers a unique and valuable investment opportunity.

As of Monday, 193 companies and institutions hold over 3.3 million BTCs in their treasuries. Among the top 20 institutional bitcoin holders, Strategy and Metaplanet are the largest bitcoin treasury companies. KindlyMD will join the list of companies investing in bitcoin treasury.

Earlier this year, several companies announced plans to invest in bitcoin treasury. In March, crypto mining company Bitfury announced a $500 million bitcoin treasury investment. Afterward, bitcoin mining firm Mawson announced a $250 million bitcoin treasury investment.

Earlier this month, crypto exchange Coinbase (NASDAQ:COIN) announced plans to invest up to $1 billion in treasury investments in publicly traded companies within the metaverse, Web3, and blockchain sectors.

Recently, several institutions and governments have shown interest in investing in bitcoin.

Earlier this month, the United States announced that it is considering investing in bitcoin to counter the rising inflation.

Last year, El Salvador became the first country to adopt bitcoin as legal tender. Afterward, several countries, including Vietnam and Argentina, expressed interest in investing in bitcoin.

According to CryptoQuant’s on-chain analysis, the supply of bitcoin on centralized exchanges dropped by 1 million to 2.4 million in the past two years.

With bitcoin’s total supply fixed at 21 million, while long-term holders continue to aggressively accumulate, it is evident a supply shock is imminent. As the demand for bitcoin increases, while its supply is limited, it will exert upward pressure on the cryptocurrency’s price.

Bitcoin price technical analysis suggests the onset of a parabolic rally in the next few months.

According to the established four-year bitcoin cycles, it is evident that BTC price, against the U.S. dollar, has begun the euphoric phase of the 2025 bull run.

Considering the diminishing returns theory, bitcoin price is well positioned to reach between $250k and $350k before the end of this year.

From a technical analysis standpoint, bitcoin’s monthly Relative Strength Index (RSI) tends to reach about 90 percent at the peak of every macro bull cycle.

Furthermore, bitcoin’s monthly MACD line remains above the signal line and the zero line amid the rising bullish histograms, which suggests rising cash inflows.