People walk past an advertisement feature Donald Trump with Bitcoin in Hong Kong.
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Shares of KindlyMD skyrocketed 600% Monday after the healthcare company announced a merger with Nakamoto Holdings, a bitcoin investment company founded by David Bailey, a key cryptocurrency advisor to President Donald Trump.
The newly formed company has secured $200 million in convertible debt and $510 million in fresh capital through a private investment in public equity (PIPE) deal, offering shares at $1.12 each.
The raise drew support from more than 200 investors, including Actai Ventures, Arrington Capital, BSQ Capital Partners, Kingsway, Van Eck, and Yorkville Advisors.
The roster of individual investors reads like a who’s who of bitcoin — cryptographer Adam Back; Balaji Srinivasan, a former Coinbase executive; Jihan Wu, co-founder of Bitmain; and Ricardo Salinas, the Mexican billionaire who has become one of bitcoin’s most vocal supporters.
Bitcoin was trading above $104,000 Monday morning. The price of the crytocurrency lept above $100,000 on Thursday for the first time since February.
Shares of KindlyMD will continue to trade under the “KDLY” ticker. The combined company expects to be renamed and will get a new ticker symbol.
Nakamoto, led by Bailey as CEO, will focus on acquiring and holding bitcoin — a strategy that has become popular among investment firms seeking to turn their stock into a direct bet on the cryptocurrency’s price.
“We believe a future is coming where every balance sheet – public or private – holds bitcoin,” Bailey said in a press release.
Bailey isn’t the first to chase this model. Michael Saylor’s Strategy (formerly MicroStrategy) transformed itself from a software company into a bitcoin holding firm in 2020, converting its cash reserves into bitcoin and watching its stock skyrocket as bitcoin’s value surged.
But KindlyMD’s foray into crypto is even stranger, given that the company built its brand around combating opioid addiction with holistic health services.
“This merger represents a strategic leap for KindlyMD, allowing us to expand our mission,” said Tim Pickett, CEO of KindlyMD. “Nakamoto brings in a team with deep expertise in Bitcoin strategy and unparalleled access to the leading experts in bitcoin treasury management.”
Pickett, who will continue to oversee KindlyMD’s healthcare operations, insisted that the clinics will maintain their focus on treating opioid addiction and offering patient-first care.
“It’s a bold new vision that will drive long-term value for our shareholders,” added Pickett.
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