KindlyMD Stock Soars 250% Following Merger with Trump Crypto Advisor David Bailey

Shares of healthcare company KindlyMD (KDLY) surged by 250% on Monday following the announcement of its merger with Nakamoto Holdings, a Bitcoin investment firm established by David Bailey, who previously advised President Donald Trump on crypto matters.

KindlyMD Raises $710 Million in Investment

As reported, the newly formed company has secured significant funding, comprising $200 million in convertible debt and an additional $510 million via a private equity investment (PIPE).

Investors buying shares in the PIPE are paying $1.12 each, while the convertible notes are set to convert at a premium rate of $2.80. Importantly, these notes are zero-coupon for the initial two years, allowing investors to take advantage of future growth potential.

Additional Insights

Bailey shared the enthusiastic response to the funding opportunity, indicating, “I’ve been securing around $100 million each day. Just yesterday, I raised nearly $200 million.” Over 200 investors have engaged in this funding round, including notable firms like Actai Ventures, Arrington Capital, and Van Eck.

Some individual investors comprise significant figures within the cryptocurrency sector, such as cryptographer Adam Back, CEO of Blockstream, and former Coinbase executive Balaji Srinivasan.

A Groundbreaking Merger for Bitcoin Utilization

Constantine Karides, head of Reed Smith’s Crypto & Digital Assets Group and lead counsel for the merger, described it as a “groundbreaking transaction.”

Karides emphasized that Bitcoin’s emergence as a treasury asset indicates a natural evolution within capital markets, aligning with innovative transaction frameworks that incorporate blockchain technology.

The merger carries intriguing prospects, especially as KindlyMD’s current goal revolves around combating opioid dependency. Bailey pointed out that the team searched for the “ideal vehicle” to take Nakamoto public, highlighting KindlyMD’s existing interest in Bitcoin. “The future of KindlyMD will differ significantly from its present form,” he remarked.

Further Topics

Plans are underway to rebrand the merged entity, including a change in its ticker from “KDLY.” The strategy involves creating a comprehensive network of Bitcoin-oriented enterprises, with KindlyMD’s healthcare operations gradually becoming less dominant.

However, Tim Pickett, CEO of KindlyMD, reassured stakeholders that the clinics will maintain a focus on addressing opioid addiction and delivering patient-centered care. “This merger signifies a strategic advancement for KindlyMD, empowering us to broaden our mission,” remarked Pickett.

He also expressed optimism that the collaboration with Nakamoto, which possesses extensive knowledge in Bitcoin strategy and treasury management, will foster long-term shareholder value.

BTC is currently trading at approximately $102,260, having experienced an impressive 8% increase over the past week, and is just 6% shy of its all-time peak of $109,000 reached earlier this year.

Featured image from DALL-E, chart from TradingView.com