It seems that companies whose products and services are not finding takers in the current market are pivoting at the drop of a hat to become Bitcoin (BTCUSD) treasury companies. While the most prominent among them has been the Michael Saylor-led MicroStrategy (MSTR), recently, two biotech companies have also “rebranded” their business operations to load up on the world’s largest cryptocurrency.
Among the latest companies to join this bandwagon is cannabis company KindlyMD (NAKA). Valued at a market cap of $90 million, KindlyMD’s shares have surged an impressive 742% in the year to date.
Founded in 2019, KindlyMD is a Utah-based healthcare provider that specializes in alternative pain management, including through medicinal cannabis use. Its licensed clinicians integrate cannabis therapy into holistic care plans, positioning the company as one of the largest Qualified Medical Providers (QMPs) within Utah’s regulated medical cannabis framework.
But this is all set to go up in smoke as the company has been acquired by Bitcoin-centric investment firm Nakamoto Holdings. After the merger, the combined company will operate with the KindlyMD name and with the ticker symbol NAKA.
The whole transaction generated $540 million in gross proceeds through a private placement in public equity (PIPE) financing, with a $200 million convertible note also closed. Thus, with a $740 million war chest, the company aspires to acquire 1 million BTC.
Commenting on the deal, CEO David Bailey said, “Our vision is for the world’s capital markets to operate on a Bitcoin standard. Today’s merger represents the beginning of that journey for our company.” Bailey will continue to remain the CEO of the merged entity. Co-founder of KindlyMD and ex-CEO Tim Pickett was also upbeat about the deal, saying, “We are thrilled to officially close our merger with Nakamoto. We’ve built KindlyMD on operational and innovative excellence, and we are now extending that same principle to our capital strategy. Bitcoin gives us the ability to preserve value with the same integrity we apply to delivering care.”