David Bailey’s Nakamoto and KindlyMD close merger for Bitcoin treasury

Bitcoin holding company Nakamoto and Utah-based KindlyMD officially closed their merger to start a Bitcoin treasury strategy, according to a statement published Thursday.

In May, the companies said they aimed to both accumulate Bitcoin and grow the Bitcoin owned on a per-share basis, or "Bitcoin Yield," through a variety of equity, debt, and other offerings. The company will operate as KindlyMD.

"Since I started my journey in Bitcoin 13 years ago, I've always believed Bitcoin would become the most valuable asset in human history," BTC Inc. co-founder David Bailey said in a statement. Bailey will act as the new company's CEO.

KindlyMD has raised $540 million from a private placement in public equity, or PIPE. The company expects to conclude a $200 million convertible note offering tomorrow, according to the statement. In June, the merging companies said they planned to raise $763 million, pending merger approval. 

A handful of companies have now established BTC-only corporate treasuries—a trend analysts say underscores growing structural demand and strengthens Bitcoin’s long-term outlook. KindlyMD is using the debt-and-equity capital-raising playbook popularized by Michael Saylor's Strategy and adopted by firms including Metaplanet and Semler Scientific. 

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Bitcoin beat its previous all-time high on Wednesday after briefly trading above $124,000. Institutional demand and an expected interest rate cut in September are believed to be bolstering the cryptocurrency's price.