David Bailey's Nakamoto Completes KindlyMD Merger to Create Bitcoin Treasury Vehicle
David Bailey's Bitcoin firm Nakamoto completed its merger with healthcare company KindlyMD on Thursday, creating a publicly traded Bitcoin treasury vehicle with plans to accumulate 1 million Bitcoin. According to Cointelegraph, the merged entity retains the KindlyMD name and continues trading on Nasdaq under ticker NAKA, with Nakamoto operating as a wholly owned subsidiary.
Bailey serves as CEO and chairman of the newly merged company, while KindlyMD's former CEO Tim Pickett manages healthcare operations as chief medical officer. KindlyMD shares rose 13.4% on the merger news, adding to triple-digit gains since the companies announced their agreement on May 12. The stock reached $15.02, lifting market capitalization to $114.25 million.
KindlyMD currently holds only 21 Bitcoin but plans to deploy $540 million from recent PIPE financing to build its Bitcoin treasury. At current market prices, this capital could add approximately 4,544 Bitcoin to the balance sheet. The company also expects to close a previously announced $200 million convertible note offering on Saturday.
Why This Treasury Strategy Matters
The merger represents another major entry into the corporate Bitcoin treasury space, where companies use their balance sheets to accumulate the cryptocurrency as a reserve asset. PYMNTS reports that over 90 public companies globally now hold Bitcoin as treasury assets, with regulatory clarity in 2025 giving CFOs more confidence in managing Bitcoin's financial reporting requirements.
KindlyMD's 1 million Bitcoin target would place it among the largest corporate holders if achieved. Strategy currently leads with 628,946 Bitcoin, while companies like Metaplanet and Semler Scientific have announced plans to accumulate 210,000 and 105,000 Bitcoin respectively by 2027. We recently reported that 15 US states are moving forward with plans for Bitcoin reserves, adding government support to corporate adoption trends.
The timing aligns with broader institutional acceptance, as Bitcoin ETF issuers like BlackRock and Fidelity continue accumulating Bitcoin at scale. New FASB accounting guidance effective January 2025 allows companies to adopt fair value accounting for Bitcoin holdings, improving transparency and reducing quarterly impairment charges that previously discouraged corporate adoption.
Industry Implications and Growing Risks
This merger reflects the growing competition among companies to secure portions of Bitcoin's fixed 21 million coin supply before widespread adoption drives prices higher. BeInCrypto notes that 2025 and 2026 are viewed as pivotal years for institutional integration, with more publicly listed companies expected to add Bitcoin to balance sheets as a hedge against currency devaluation.
However, the strategy carries substantial risks that investors must consider. CoinDesk recently highlighted warnings from institutional DeFi platform Sentora, which described corporate Bitcoin treasury strategies as "balance sheet roulette." The approach relies heavily on borrowing to acquire Bitcoin, a zero-yielding asset, making companies vulnerable if Bitcoin prices stagnate or decline.
Without a lender of last resort, companies could face downward spirals if Bitcoin drops trigger margin calls on their debt. Most Bitcoin treasury companies are either unprofitable or heavily dependent on Bitcoin mark-to-market gains to appear solvent. This creates systemic risk where distress signals from major holders could trigger panic selling and market volatility.
The broader cryptocurrency market continues maturing, with institutional adoption accelerating despite these concerns. As more companies follow KindlyMD's approach, the strategy's sustainability will depend on Bitcoin's continued appreciation and companies' ability to manage leveraged positions during market downturns.
