Nakamoto Holdings Merges with KindlyMD to Build the World's First Bitcoin Treasury Network

The companies seek to integrate Bitcoin into global financial markets. This enables the company to construct a treasury model using equity, debt, and several types of financial structures.

The Bitcoin-focused holding company, Nakamoto Holdings, is planning to merge with the healthcare firm KindlyMD in a move that will see the new entity house a Bitcoin treasury, the companies announced on Tuesday.

The companies are aiming to create the "world's first Bitcoin treasury network" and integrate Bitcoin into global financial markets. This will enable the company to build a treasury model using equity, debt, and several types of financial structures.

"There is increasing convergence between traditional finance and Bitcoin, and in the future, we will see Bitcoin fully integrated into all balance sheets," said David Bailey, CEO of Nakamoto Holdings.

The new entity will prioritize the integration of Bitcoin at the center of global capital markets to provide compliant and transparent financial products. This model is similar to the one used by MicroStrategy, which was the first company to introduce Bitcoin treasury management.

The $710 million transaction will involve a $510 million private placement and a $200 million sale of senior secured convertible notes. Under the private placement, common stock and pre-funded warrants in KindlyMD are priced at $1.12 per share. The new entity will be listed on top exchanges under a new ticker symbol upon the completion of financing transactions as well as the merger. KindlyMD will maintain its ticker "KDLY" until the merger has been finalized.

The joint venture company will continue KindlyMD's healthcare operations and prioritize Bitcoin treasury management.

"The transformation of Bitcoin into tradable securities instruments will have a major impact on global economics," said Bailey, whose leadership and vision are a key part of Nakamoto's plan to integrate Bitcoin into equity, debt, and hybrid products on each major exchange.

The companies are also planning to partner with BTC Inc., which is the publisher of Bitcoin Magazine, and the group behind the Bitcoin Conference to further advance the Bitcoin-based structure of the new entity. The merger could generate long-term value because it blends Bitcoin expertise as well as the healthcare sector.

The completion of the transaction is subject to approval from KindlyMD's shareholders. The new entity will operate under a new name and trade under a new ticker symbol. The board of directors will comprise six representatives from Nakamoto Holdings and one from KindlyMD.

This year, more than 70 companies have adopted Bitcoin as a core asset. The firms include Cantor Fitzgerald, SoftBank, and Bitfinex, which have all embraced this model. Nakamoto Holdings and KindlyMD are continuing to pursue market leadership in this industry.