Publicly traded company KindlyMD has completed a $200 million convertible note issuance, and the funds will be used to increase its holdings of Bitcoin.

The Bitcoin holdings camp of publicly listed companies is making new moves. Medical data service transformation company KindlyMD announced on Monday that it successfully completed a $200 million convertible note issuance, with the funds primarily aimed at purchasing more Bitcoin (BTC). This move is a key financing step following its merger with Nakamoto Holdings, a holding company co-founded with Bitcoin Magazine CEO David Bailey, which previously raised $540 million through private equity investment (PIPE). KindlyMD intends to replicate the successful path of the "first Bitcoin holdings stock" Strategy. Although its stock (NASDAQ code: NAKA) fell 12% on the day of financing, the long-term strategy aims to provide investors with indirect exposure to Bitcoin through equity holdings. Currently, there are 168 publicly listed companies globally that have included Bitcoin on their balance sheets.

The financing purpose clearly points to Bitcoin

KindlyMD announced on Monday that it has completed a total of $200 million in convertible note issuance. The company stated that it plans to use the net proceeds from this issuance to purchase more Bitcoin (BTC), while also supplementing working capital and meeting general corporate purposes. This move is the latest initiative in its ongoing strategy to accumulate Bitcoin reserves.

Merging and collaborating, with cumulative financing exceeding 700 million USD

This issuance further expands the capital pool of KindlyMD. Previously, the company raised $540 million through a private equity investment (PIPE) simultaneously while merging with the holding company Nakamoto Holdings, co-founded by Bitcoin Magazine CEO David Bailey. The merged entity will retain the KindlyMD name. David Bailey served as a cryptocurrency policy advisor during President Trump's 2024 campaign.

Strategic Transformation: From Medical Data to Bitcoin Holdings

KindlyMD initially started as a healthcare data service provider and announced in May this year its merger with Nakamoto Holdings, which focuses on purchasing Bitcoin, marking its shift in business focus towards the Bitcoin investment sector. This convertible note is managed by the investment fund YA II PN, Ltd., managed by the hedge fund Yorkville Advisors.

Market Reaction and Benchmark Strategy

On the day the news was released, KindlyMD's stock listed on Nasdaq (ticker: NAKA) closed down about 12%. Its core strategy is to allow investors to gain indirect exposure to Bitcoin, the leading cryptocurrency, by purchasing its stock. KindlyMD intends to emulate the successful model of the pioneer in Bitcoin Holdings among publicly traded companies—Strategy (formerly MicroStrategy).

Strategy: Benchmark and Demonstration Effect of Corporate Coin Holdings

Strategy is currently the world's largest corporate holder of Bitcoin, possessing 629,376 BTC, valued at over $73 billion (based on current prices). The company began purchasing Bitcoin in August 2020 after transitioning from software development, aiming to generate higher returns for its shareholders. Its stock (NASDAQ: MSTR) has soared over 2700% in price over the five years since it first purchased Bitcoin. MicroStrategy primarily funds its Bitcoin purchases through debt issuance, and its current main business has shifted towards Bitcoin securitization.

Market Background and Risk Warning

The price of Bitcoin has recently experienced fluctuations, reaching an all-time high of $124,128, with the latest trading price at $116,605, a 1% fall in the last 24 hours. Despite the emergence of companies following the Strategy model (such as KindlyMD)—some using idle cash while others finance Bitcoin purchases through debt issuance—some experts also warn that this strategy of "corporate allocation of cryptocurrency" carries risks in itself.

The camp of companies holding coins continues to expand

Currently, there are 168 publicly listed companies worldwide that have disclosed including Bitcoin in their corporate reserve assets. Besides MicroStrategy and KindlyMD, another noteworthy holder is Twenty One, which was jointly established by crypto and traditional financial giants such as Tether, investment bank Cantor Fitzgerald, and SoftBank. The company currently holds 43,500 Bitcoins, although its shares have yet to begin trading.

Conclusion

KindlyMD has raised $200 million through convertible notes to increase its Bitcoin Holdings, highlighting the ongoing trend of public companies allocating to cryptocurrency. Its merger with Nakamoto Holdings and subsequent financing aim to replicate the micro-strategy model, providing stock market investors with indirect exposure to Bitcoin. Despite short-term pressure on stock prices and the company's coin-holding strategy being subject to market volatility and leverage risks, mainstream crypto assets represented by Bitcoin are increasingly becoming an important option for the diversification of public companies' balance sheets. In the future, KindlyMD's Bitcoin reserve size and the market's recognition of its strategy will become important cases to observe the development of the "Corporate Coin-Holding 2.0 Era."