KindlyMD, a healthcare services provider, has secured shareholder approval for a merger with Nakamoto Holdings, a Bitcoin holding company established by David Bailey, an advisor to former US President Donald Trump on cryptocurrency matters. This merger signifies a strategic move into the Bitcoin space and reflects a growing trend of companies incorporating Bitcoin into their treasury reserves.
The merger, as detailed in a May 20 statement from KindlyMD, involves both companies filing information statements with the Securities and Exchange Commission (SEC). The finalization of the merger is anticipated approximately 20 days after these statements are shared with KindlyMD’s shareholders. The transaction is projected to conclude in the third quarter of 2025.
Following the announcement, KindlyMD’s shares (KDLY) experienced a surge. Google Finance data indicated a 9% increase at the close of the May 20 trading session, settling at $15.22. An additional 4.8% gain was observed after-hours. Notably, KDLY’s year-to-date performance has been remarkable, exceeding a 979% increase.
The initial announcement of the merger, made on May 12, revealed the merged entity’s intention to leverage equity, debt, and other financial instruments to foster the development of Bitcoin-native companies. A core component of the strategy involves accumulating Bitcoin (BTC) to strengthen the company’s treasury.
Why is this merger significant?
- Bitcoin Integration: Highlights the increasing acceptance and integration of Bitcoin into traditional business sectors.
- Treasury Diversification: Reflects a trend of companies diversifying their assets by including Bitcoin.
- Trump Advisor Involvement: The involvement of a crypto advisor to Donald Trump adds a layer of political and strategic significance.
The Trend of Companies Accumulating Bitcoin
KindlyMD and Nakamoto Holdings’ merger occurs amid a broader trend of public companies adding Bitcoin to their balance sheets. This movement surpasses the acquisition rates of both retail investors and exchange-traded funds (ETFs), according to data from Bitcoin investment firm River.
Here are a few examples:
- Strive: Vivek Ramaswamy’s Strive announced its intention to acquire Bitcoin claims related to the defunct Mt. Gox exchange, targeting 75,000 BTC at a discounted rate.
- Strategy (formerly MicroStrategy): On May 19, Strategy reported the purchase of 7,390 BTC for $765 million. However, the company’s executives face a class-action lawsuit alleging misrepresentation of the company’s Bitcoin investments.
- Tether: Earlier in May, stablecoin issuer Tether acquired nearly $459 million worth of Bitcoin for Twenty One Capital, a Bitcoin investment firm awaiting the completion of a SPAC merger with Cantor Equity Partners.
Key Takeaways
- KindlyMD shareholders approved a merger with Nakamoto Holdings, a Bitcoin-focused company led by David Bailey.
- The merged entity plans to develop Bitcoin-native companies and accumulate Bitcoin for its treasury.
- The merger reflects a growing trend of public companies adding Bitcoin to their balance sheets.
- The increasing institutional interest in Bitcoin signifies a shift in its perception as a legitimate asset class.
