A healthcare company suddenly reborn as a Bitcoin firm. In one of the most dramatic corporate pivots of 2025, the Utah-based healthcare company KindlyMD merged with Nakamoto Holdings to become a Bitcoin treasury company, raising $710 million in the process. Here is the story behind this bold move and the wider trend of corporate Bitcoin treasury 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) and $200 million in 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), and Eric Semler (CEO of Semler Scientific).

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.

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