KindlyMD merging with Trump crypto advisor David Bailey’s Nakamoto

Shares of KindlyMD skyrocketed 250% Monday after the healthcare company announced a merger with Nakamoto Holdings, a bitcoin investment company founded by David Bailey, a key cryptocurrency advisor to President Donald Trump.

The newly formed company has secured $200 million in convertible debt and $510 million in fresh capital through a private investment in public equity (PIPE) deal, offering shares at $1.12 each.

According to Bailey, the convertible note carries a premium to the PIPE price, with investors buying shares at $1.12, but the notes will convert at $2.80. He added that the notes are zero-coupon for the first two years.

Since news of the fund broke on Wednesday, the project has attracted hundreds of millions of dollars in additional commitments, Bailey said.

“I’ve been raising about $100 million a day,” Bailey told CNBC. “Yesterday, I raised almost $200 million.”

The raise drew support from more than 200 investors, including Actai Ventures, Arrington Capital, BSQ Capital Partners, Kingsway, Van Eck, and Yorkville Advisors.

The roster of individual investors reads like a who’s who of bitcoin — cryptographer Adam Back; Balaji Srinivasan, a former Coinbase executive; Jihan Wu, co-founder of Bitmain; and Ricardo Salinas, the Mexican billionaire who has become one of bitcoin’s most vocal supporters.

Constantine Karides, chair of Reed Smith’s Crypto & Digital Assets Group, was lead counsel on the deal. He called it a “transformational transaction,” noting that “bitcoin’s emergence as a treasury asset is a natural evolution.”

“In capital markets, we’re seeing strong adoption of alternative and innovative transaction structures that fully embrace blockchain and digital assets enabled by new technologies,” Karides said.

But KindlyMD’s foray into crypto is even stranger, given that the company built its brand around combating opioid addiction with holistic health services.

Bailey said his team was searching for “the right vehicle” to take Nakamoto public, and KindlyMD’s leadership team was already full of bitcoin enthusiasts.

“They believed in the strategy,” Bailey said. “What KindlyMD will look like in the future will be different than what it looks like today.”

He confirmed that the combined company plans to rebrand, change its ticker from “KDLY,” and begin acquiring bitcoin-native companies to build a global network of bitcoin holdings.

According to Bailey, the vision is to build a global network of bitcoin-focused businesses, with the healthcare operation eventually playing a smaller role.

“This merger represents a strategic leap for KindlyMD, allowing us to expand our mission,” said Tim Pickett, CEO of KindlyMD. “Nakamoto brings in a team with deep expertise in Bitcoin strategy and unparalleled access to the leading experts in bitcoin treasury management.”

Pickett, who will continue to oversee KindlyMD’s healthcare operations, insisted that the clinics will maintain their focus on treating opioid addiction…