KindlyMD (KDLY) shares soar 673% on transformative Bitcoin merger with Nakamoto Holdings

KindlyMD (KDLY) shares soared 673% to $30.01 in early Monday trading following the announcement of a transformative merger with Nakamoto Holdings

KindlyMD (NASDAQ:KDLY) shares skyrocketed 673% on Monday morning. The shares traded up $27.99, notching a high of $30.01 by 9:38 AM ET. The massive surge came after the Utah-based healthcare provider announced a merger with Bitcoin investment firm Nakamoto Holdings, founded by cryptocurrency expert David Bailey, a key advisor to President Donald Trump.

The deal, which will see KindlyMD become a leader in Bitcoin treasury strategies, will also include $510 million in fresh capital raised via a private investment in public equity (PIPE) deal priced at $1.12 per share, and $200 million in convertible debt.

This brings the total capital infusion to a substantial $710 million—one of the largest for a Bitcoin-focused public transaction. It also attracted over 200 investors. Among them are institutional investors like Actai Ventures, Arrington Capital, BSQ Capital Partners, Kingsway, Van Eck, and Yorkville Advisors.

Also participating are prominent Bitcoin pioneers including cryptographer Adam Back, former Coinbase (NASDAQ:COIN) executive Balaji Srinivasan, Bitmain co-founder Jihan Wu, and Mexican billionaire Ricardo Salinas Lee, a vocal Bitcoin advocate.

KindlyMD will align with Nakamoto’s vision to build a global network of Bitcoin-native companies. The companies will cooperate to integrate Bitcoin as a core treasury asset for optimal capital structure and long-term value creation.

Nakamoto, helmed by Bailey as CEO, will concentrate on acquiring and holding Bitcoin. The goal is to maximize Bitcoin yield per share through a mix of equity, debt, and other financial instruments. This strategy aligns with a broader trend in the capital markets, as companies like Michael Saylor’s Strategy (NASDAQ:MSTR) have reportedly increased their valuations by adopting Bitcoin as a treasury reserve asset.

KindlyMD's shares will continue trading on Nasdaq under the KDLY ticker for now. The combined company plans to rebrand and adopt a new ticker symbol post-merger, pending shareholder approval and customary closing conditions.

Bitcoin investment firms, like Nakamoto, often raise significant sums of capital—typically blending equity and debt—to fund their cryptocurrency treasury. These firms provide investors with an interesting avenue to gain exposure to Bitcoin's price movements without engaging in direct cryptocurrency exchange transactions.

The involvement of high-profile investors like Wu and Srinivasan, combined with Bailey's close ties to Trump, who has recently become more pro-crypto, signals confidence in Bitcoin's role in global capital markets.

However, the merger also presents some risks. KindlyMD's existing operations, which include providing integrated medical services and focusing on combating the opioid crisis, will now coexist with Nakamoto's cryptocurrency strategy.

This latter part is subject to the inherent volatility of cryptocurrencies and the evolving landscape of cryptocurrency regulation.

For now, the nearly 700% rally in KDLY shares showcases the market's bullish reaction to this bold merger pivot. The combined entity's long-term success will depend on its ability to navigate the interplay of healthcare, cryptocurrency, and global financial markets.