KindlyMD, a firm transitioning its focus toward Bitcoin treasury management, has successfully closed a $200 million convertible note offering to purchase more BTC. The announcement, made on August 15, 2025, follows the company’s May 2025 merger with Nakamoto Holdings, a Bitcoin-focused holding company co-founded by David Bailey, CEO of Bitcoin Magazine and an advisor to former U.S. President Donald Trump during his 2024 campaign [1].
The convertible note offering is structured without interest for the first two years, with a 6% annual interest rate applicable in the third year, maturing in 2028 [3]. Funds raised will be used exclusively to increase BTC holdings, in addition to general corporate and working capital needs. This offering complements a $540 million private placement in public equity (PIPE) that was completed concurrently with the merger [1]. The financing is being managed by Yorkville Advisors’ YA II PN fund, which has the option to convert the debt into equity at $2.80 per share [3], a term that may raise concerns over potential equity dilution.
KindlyMD’s stock (ticker: NAKA) closed down 11.2% on the day of the announcement, reflecting investor reaction to the convertible note structure and broader market movements. Bitcoin itself experienced a decline following a record high of $124,474 the previous week, according to CoinGecko [6]. The stock decline mirrored smaller drops in other Bitcoin treasury companies, such as MicroStrategy and Bitdeer, indicating a sector-wide sensitivity to both news and market sentiment [3].
The financing underscores a growing trend among publicly traded companies to adopt Bitcoin treasuries as a strategy for shareholder returns. KindlyMD joins a list of over 168 public firms that now hold Bitcoin, including MicroStrategy, which has become the largest corporate holder with over 629,000 BTC [1]. The move reflects a broader shift in corporate finance, where Bitcoin is increasingly seen as a strategic asset capable of generating substantial long-term value.
The convertible note also includes collateral requirements, with KindlyMD mandated to hold Bitcoin worth double the note’s principal [3]. This highlights the rising role of crypto as security in large-scale corporate financing. The structure also signals the increasing sophistication of Bitcoin treasury strategies, which now involve complex financing mechanisms beyond simple cash purchases.
KindlyMD’s strategy to build its Bitcoin treasury is part of a broader effort to position itself for a Nasdaq listing and to create a diversified business model that combines healthcare operations with digital asset growth [4]. By leveraging steady revenue from its healthcare services and reinvesting in Bitcoin, the company aims to mitigate the volatility typically associated with crypto investments [4].
The Bitcoin treasury trend is gaining momentum. In August 2025, Metaplanet also expanded its Bitcoin holdings by 775 BTC, further demonstrating the appeal of digital assets as a corporate investment vehicle [5]. However, analysts have emphasized the inherent risks, particularly in financing through debt and the potential for market volatility to impact returns [2].
As Bitcoin treasuries continue to evolve, KindlyMD’s $200 million raise represents a significant step in the maturation of corporate crypto strategies. The company’s approach reflects the growing institutional acceptance of Bitcoin while also highlighting the challenges of balancing innovation with financial discipline.
Sources:
[1] https://decrypt.co/335709/bitcoin-treasury-kindlymd-closes-200m-raise-buy-btc
[2] https://www.coindesk.com/markets/2025/08/18/kindlymd-closes-usd200m-convertible-note-funding-for-more-bitcoin
[3] https://holder.io/news/kindlymd-200m-convertible-note-bitcoin/
[4] https://www.ainvest.com/news/kindlymd-strategic-uplisting-nasdaq-global-market-bitcoin-driven-treasury-innovation-dual-model-catalyst-institutional-credibility-creation-2508/
[5] https://www.coindesk.com/markets/2025/08/18/metaplanet-expands-bitcoin-treasury-by-775-btc-assets-outweigh-debt-18-fold
[6] https://www.mitrade.com/insights/news/live-news/article-3-1042799-20250815
