KindlyMD Expands Bitcoin Holdings with $200 Million Convertible Debt
(Previous context: Revisiting the peak of the 2021 bull market, the extravagant claims and sobering insights of crypto influencers)
(Background: As the bull market pauses, four key factors for screening potential altcoins for 2025)
NASDAQ-listed integrated healthcare technology company KindlyMD announced on Monday that it has completed a $200 million convertible debt financing to accelerate the inclusion of Bitcoin into its balance sheet.
0% to 6%: Balancing Convertible Debt Terms and Risks
The $200 million convertible debt has a zero interest rate for the first two years, and an interest rate of 6% starting in the third year, maturing in 2028. KindlyMD is using approximately $400 million worth of Bitcoin as collateral, effectively reducing lenders’ concerns.
The lender, YA II PN, Ltd., can convert the debt into shares at any time at a price of $2.80 per share, but this effectively shifts the potential dilution risk to future share prices. Following the announcement, KindlyMD’s stock price fell 12% on the 18th, indicating that the market is taking a “discount first, observe later” approach regarding Bitcoin’s volatility and equity dilution.
However, compared to issuing shares outright, convertible debt allows the company to access cash immediately while delaying dilution, balancing cash flow and shareholder structure—a common fundraising route in the crypto space in recent years.
From Medical Data to “Bitcoin Treasure Stock”
KindlyMD’s transformation began with its merger with Bitcoin investment firm Nakamoto Holdings. The latter’s founder, David Bailey, previously served as a cryptocurrency policy advisor to former U.S. President Donald Trump, making him well-versed in industry regulatory dynamics.
Post-merger, the new company adopted the ticker symbol NAKA and simultaneously completed a $540 million PIPE financing, clearly designating Bitcoin as a core asset. Bailey openly stated:
“Our goal is to accumulate 1 million Bitcoins within the next ten years.”
From a capital market perspective, KindlyMD is not an isolated case but rather a magnifying glass for a trend: in an environment of high inflation and capital costs, companies are seeking high beta assets in more aggressive ways. Whether KindlyMD can navigate the turbulent waters successfully will be one of the key observations in assessing whether “Bitcoin enters corporate financial statements” will become normalized.
