💰 A Healthcare Company Transforms into a Bitcoin Treasury Firm In one of the most dramatic corporate pivots of 2025, a small healthcare company called KindlyMD merged with Nakamoto Holdings to become a Bitcoin treasury company, raising $710 million in the process. Here's the story of this bold transformation, its challenges, and what it means for the growing trend of corporate Bitcoin strategies.
What Was KindlyMD?
KindlyMD was founded in 2019 in Salt Lake City, Utah, as a healthcare services company. It offered integrated services including primary care, pain management, behavioral health, and alternative therapies, with a particular focus on addressing the opioid crisis. Listed on the Nasdaq, it was a small-cap healthcare company until a major turning point in 2025.
The Nakamoto Merger and Bitcoin Pivot
In May 2025, KindlyMD announced its merger with Nakamoto Holdings, a company founded by David Bailey. Bailey is the CEO of BTC Inc., the parent company of Bitcoin Magazine (the oldest Bitcoin-focused media outlet in the world), and is considered one of the most influential figures in the Bitcoin community. He notably advised the Trump campaign on cryptocurrency policy during the 2024 U.S. presidential election.
The merger was accompanied by a massive capital raise totaling $710 million: $510 million through a Private Investment in Public Equity (PIPE) at $1.12 per share, and $200 million in senior secured convertible notes. Over 200 investors from six continents participated, including institutional investors like Actai Ventures, Arrington Capital, and Van Eck, as well as notable individuals such as Simon Gerovich (CEO of Metaplanet), Eric Semler (CEO of Semler Scientific), and Adam Back.
The "One Million Bitcoin" Ambition
Nakamoto has set an audacious long-term goal: to accumulate one million Bitcoin. As of September 2025, the company had purchased approximately 5,765 BTC for about $681 million at a weighted average price of $118,204 per Bitcoin. After utilizing 367 BTC for strategic investments, the company held 5,398 BTC as of November 12, 2025.
Bailey has stated his belief that Bitcoin will become the most valuable asset in human history, held by every person, company, and government, positioning Bitcoin at the center of the global financial system.
Global Investment Strategy
Beyond simply holding Bitcoin, Nakamoto has been actively investing in Bitcoin treasury companies worldwide:
- $15 million investment in Treasury BV, a Dutch Bitcoin treasury company (the company's first investment in a foreign publicly listed Bitcoin company)
- $30 million investment in Metaplanet (TSE: 3350), Japan's first and leading Bitcoin treasury company (the largest investment and first in Asia)
- $6 million investment in FUTURE Holdings AG, a Swiss Bitcoin treasury company
The Metaplanet investment particularly stands out as it supports what has become a pioneering force in the Bitcoin treasury movement in Japan.
The Harsh Reality: Stock Price Collapse
However, the market has rendered a harsh verdict on this bold strategy. After the merger completion, NAKA shares plummeted. While the stock briefly soared above $34 in May 2025, it subsequently declined continuously, falling below $1 in late October 2025. In December, the company received notice from Nasdaq that it had failed to meet the minimum bid price requirement ($1), giving it until June 8, 2026, to regain compliance or face delisting.
Bailey himself made an unusual statement in a September shareholder letter, encouraging shareholders who came looking for a short-term trade to exit.
Risks and Challenges of Bitcoin Treasury Strategies
Galaxy Digital issued a warning in an August 2025 report about the proliferation of Bitcoin treasury companies. These Digital Asset Treasury Companies (DATCOs), which collectively hold over $100 billion in digital assets, depend on their stock prices consistently trading above the net asset value (NAV) of their Bitcoin holdings.
With approximately 10 companies entering this strategy each week, analysts warn of structural risks. If these companies were to begin selling simultaneously, it could create significant downward pressure on Bitcoin's price itself. Some observers have drawn parallels to the investment trust boom of the 1920s, raising concerns about systemic fragility.
Connection to the Japanese Market
Interest in Bitcoin treasury strategies has also been growing in Japan. Metaplanet transformed into a Bitcoin treasury company in 2024 and has become the fourth-largest corporate Bitcoin holder in the world by 2025. Japan's regulatory changes in April 2024, which exempted certain cryptocurrency holdings from mark-to-market taxation, have also encouraged corporate adoption of digital assets.
The KindlyMD/Nakamoto case serves as an important case study demonstrating both the dynamics and risks of such strategies.
Looking Ahead
In December 2025, KindlyMD appointed Brandon Green as the new CEO, with David Bailey stepping back to focus on his role as chairman. The company has announced a share repurchase program and a strategic partnership with Antalpha involving $250 million in secured convertible notes, intensifying efforts to recover its stock price.
Whether this unusual combination of healthcare services and Bitcoin treasury will succeed in the long term depends on Bitcoin market trends and management's execution capabilities.
This case vividly illustrates both the potential and risks of placing Bitcoin at the center of corporate financial strategy. As similar movements spread in Japan and other countries, what discussions are happening in your country about these "cryptocurrency treasury companies"? We'd love to hear about the situation where you live.
References
- https://nakamoto.com/
- https://www.businesswire.com/news/home/20251119383156/en/KindlyMD-Reports-Third-Quarter-2025-Operational-and-Financial-Results
- https://www.coindesk.com/markets/2025/12/16/kindlymd-faces-nasdaq-delisting-risk-after-failing-to-meet-minimum-share-price-levels
- https://bitcoinmagazine.com/news/david-bailey-and-bitcoin-native-holding-company-nakamoto-announce-merger-with-kindlymd-to-establish-bitcoin-treasury
Reactions in Japan
A healthcare company suddenly transforming into a Bitcoin company honestly makes no sense. What about their core business? What about accountability to shareholders?
A $30 million investment in Metaplanet is impressive. This will further strengthen Japan's Bitcoin treasury company ecosystem.
David Bailey was Trump's crypto advisor, right? The growing connection between politics and Bitcoin is concerning.
A 99% stock price drop... Is this the real fate of Bitcoin treasury companies? As a Metaplanet holder, this makes me worried.
This shows that trying to copy Strategy (formerly MicroStrategy) doesn't work easily. Imitating Saylor isn't simple.
They're saying their goal is to hold one million Bitcoin, but with only about 5,000 BTC and a crashing stock price, the gap between vision and reality is too wide.
Isn't it unprecedented for a CEO to recommend selling? On the other hand, maybe that honesty deserves some credit.
Japan's exemption from mark-to-market taxation at fiscal year-end is exactly why companies like Metaplanet can grow. Tax policy really matters.
I read Galaxy's warning. The similarity to the 1920s investment trust boom is chilling. A sign of a bubble about to burst?
They say they'll continue the healthcare business, but management's focus is clearly on Bitcoin. I'm worried about the patients.
Hearing that NAKA stock is at risk of delisting made me realize the harsh reality of Bitcoin treasury companies.
I think it's an interesting experiment in the long term. If Bitcoin truly is 'digital gold,' it's rational for companies to hold it as treasury.
Someone connected to Bitcoin Magazine creating their own company and merging with a public company - isn't that a conflict of interest?
Apparently about 10 companies are entering the Bitcoin treasury strategy every week. This is no longer a boom, it's mania.
It's reassuring that Simon Gerovich participated in the PIPE. Looking forward to the collaboration between Metaplanet and Nakamoto.
Considering David Bailey was Trump's crypto advisor, I wonder if this move is a pure business decision or if there's political motivation behind it
Happy they invested in Treasury BV in the Netherlands, but seeing the parent company struggling this much makes me worry about their reliability as an investor
Bitcoin adoption is growing in Latin America. I think it makes sense for companies to hold BTC as a treasury asset, especially in countries with high inflation
From Singapore's perspective, Asia's Bitcoin investment environment is different from the West. The investment in Metaplanet seems like a strategically smart choice
German regulators would never allow such a drastic business pivot. From a shareholder protection standpoint, the American market is a bit too unregulated
A 99% stock price drop is catastrophic. Is this the reality of the 'Bitcoin revolution'? Too speculative and dangerous for regular investors
In India, crypto regulations are strict, so such a corporate strategy is unthinkable. But I'm watching it as an interesting case study
In France, many people are skeptical of Bitcoin. Companies betting so boldly on BTC feels very American... or maybe just reckless
Crypto investing is very popular in Korea, but transforming an entire company into a BTC company is too extreme even by our standards
Bitcoin ETFs were approved in Brazil too, and crypto is becoming mainstream. I think corporate BTC adoption will increase
Views on crypto are divided in Central Europe. I want to see how this experimental corporate strategy plays out
The UAE is very Bitcoin-friendly. I think there's a high chance companies like this will relocate to Dubai
What happened to their responsibility as a healthcare company? Chasing BTC while leaving patients behind seems like an ethics issue
Crypto regulations are being discussed in Australia too. Japan's Metaplanet success is a reference, but KindlyMD's failure is also an important lesson
Canada already has Bitcoin ETFs, so there might be less need for companies to transform into treasury companies here