Bitcointreasury KindlyMD Closes $200 Million Convertible Note Offering
KindlyMD has closed a $200 million convertible note offering that it will use to buy more BTC, the company announced Monday.
The issuance is the latest step in the company’s strategy to build its BTC holdings and adds to the $540 million that the company raised via a private placement in public equity (PIPE), which closed concurrently as it merged with Nakamoto Holdings. The combined company is retaining the KindlyMD name.
“The Company intends to use the net proceeds from the Convertible Note offering to purchase more Bitcoin, as well as for working capital and general corporate purposes,” KindlyMD said in a statement Friday.
Merger and Management
In May, Kindly, which has shifted its focus as a healthcare data provider, and Nakamoto Holdings announced their merger. Nakamoto is a holding company co-founded by Bitcoin Magazine CEO David Bailey, with the intent of purchasing Bitcoin. CEO Bailey advised President Trump on his 2024 crypto policy while the Republican was campaigning.
YA II PN, Ltd., an investment fund managed by hedge fund Yorkville Advisors, is managing the financing.
Market Performance
KindlyMD’s stock, which trades on the Nasdaq under the ticker NAKA, closed about 12% lower on Monday. The idea is that investors will be able to get exposure to the leading cryptocurrency by buying its stock.
A full 168 public companies have Bitcoin treasuries—a move popularized by Michael Saylor’s software firm Strategy, which began purchasing the asset in 2020.
After pivoting from software development, Strategy started buying Bitcoin in August 2020 as a way to generate better returns for its shareholders. It is the largest corporate holder of the asset with 629,376 BTC worth over $73 billion. It mostly works now to securitize Bitcoin.
Bitcoin was recently trading for $116,605 per coin after dropping 1% over a 24-hour period. It broke a new all-time high last week of $124,128, according to crypto data provider CoinGecko.
Strategy issues debt to fund its purchases. Since Strategy first bought Bitcoin five years ago, its stock (Nasdaq: MSTR) has rocketed up by over 2,700%.
Some of Strategy’s followers are using spare cash to buy the flagship digital currency, while others are issuing debt. But some experts have warned that the crypto play has its risks.
Other notable treasuries include Twenty One, started by a combination of crypto and traditional finance powerhouses—Tether, Bitfinex, Cantor Fitzgerald, and SoftBank. It holds 43,500 digital coins, although it has yet to begin trading.