Shares of healthcare company KindlyMD (KDLY) skyrocketed by 250% on Monday after the firm announced a merger with Nakamoto Holdings, a Bitcoin (BTC) investment company founded by David Bailey, crypto advisor to President Donald Trump.
KindlyMD Secures $710 Million In Funding
According to CNBC, the newly merged entity has secured a substantial financial boost, raising $200 million in convertible debt and an additional $510 million through a private investment in public equity (PIPE) deal.
Investors in the PIPE are purchasing shares at $1.12 each, while the convertible notes will convert at a premium price of $2.80. Notably, these notes are zero-coupon for the first two years, allowing investors a unique opportunity to benefit from future growth.
Bailey revealed the overwhelming interest in the offering, stating, “I’ve been raising about $100 million a day. Yesterday, I raised almost $200 million.” The funding round has attracted over 200 investors, including prominent names such as Actai Ventures, Arrington Capital, and Van Eck.
Individual backers include notable figures in the cryptocurrency world, such as cryptographer Adam Back, CEO of Blockstream, and former Coinbase executive Balaji Srinivasan.
A ‘Transformational Transaction’ For Bitcoin Integration
Constantine Karides, chair of Reed Smith’s Crypto & Digital Assets Group and lead counsel on the deal, characterized the merger as a “transformational transaction.”
Karides noted that Bitcoin’s rise as a treasury asset is a natural progression, reflecting a broader trend in capital markets toward innovative transaction structures that embrace blockchain technology.
The merger’s implications are particularly intriguing given KindlyMD’s existing mission to address opioid addiction. Bailey emphasized that his team sought a “right vehicle” to take Nakamoto public, and KindlyMD’s leadership was already enthusiastic about bitcoin. “What KindlyMD will look like in the future will be different than what it looks like today,” he stated.
Plans are in place for a rebranding of the combined company, which will also change its ticker symbol from “KDLY.” The vision is to build a global network of bitcoin-focused businesses, with KindlyMD’s healthcare operations gradually taking a smaller role.
However, Tim Pickett, CEO of KindlyMD, assured stakeholders that the clinics would continue to prioritize treating opioid addiction and providing patient-focused care. “This merger represents a strategic leap for KindlyMD, allowing us to expand our mission,” Pickett said.
Pickett also expressed confidence that the partnership with Nakamoto, which brings deep expertise in Bitcoin strategy and treasury management, will drive long-term value for shareholders.
Trading at approximately $102,260, BTC’s price has recorded a notable 8% surge in the weekly time frame, hovering just 6% below its all-time high of $109,000 reached in the first quarter of the year.
Featured image from DALL,-E, chart from TradingView.com