Bitcoin News Today: KindlyMD raises $200M convertible note to expand Bitcoin treasury with 6% interest from year three

KindlyMD has completed a $200 million convertible note offering to further its Bitcoin treasury strategy. The funding, announced on August 6, 2025, is structured to allow the company to purchase additional Bitcoin while supporting working capital and general corporate purposes [1]. The offering includes a two-year interest-free period, followed by a 6% annual interest rate beginning in year three, with the debt maturing in 2028. Yorkville Advisors’ YA II PN fund led the transaction, which includes terms allowing Yorkville to convert debt into equity at $2.80 per share, potentially raising concerns around equity dilution [2]. To secure the loan, KindlyMD must provide Bitcoin collateral valued at twice the principal amount [2].

This move follows the company’s recent merger with Nakamoto, with David Bailey, the former CEO of Nakamoto, now leading KindlyMD. The firm has positioned itself as a dual-model business, integrating healthcare innovation with institutional-grade Bitcoin treasury operations [3]. CEO David Bailey emphasized that the funds will be used to expand the company’s Bitcoin holdings, stating, “The proceeds from the convertible note will be used to purchase Bitcoin as part of the company’s Bitcoin treasury strategy” [2].

The announcement had immediate market implications, as NAKA shares—listed on Nasdaq—initially saw a 13.4% surge following the news. However, the stock later declined by 11.2%, mirroring broader market movements where other Bitcoin treasury-focused companies like MicroStrategy also experienced minor declines [2]. Analysts note that the absence of interest for the first two years reduces immediate financial pressure on the company, aligning its long-term value with Bitcoin’s appreciation [1].

KindlyMD’s investment strategy is backed by a secured convertible debenture, supported by a $400 million Bitcoin collateral, signaling a strong commitment to using Bitcoin as a core reserve asset [3]. The company’s approach mirrors broader trends in corporate finance, where firms increasingly integrate crypto assets into diversified treasury strategies [4]. The projected acquisition of approximately 4,544 BTC from the financing is expected to influence Bitcoin market dynamics, potentially increasing liquidity and institutional participation [2].

The strategic use of structured financing and collateral reflects a growing maturity in how firms manage crypto assets. As KindlyMD continues to expand its Bitcoin treasury, the move could set a precedent for how other companies approach cryptocurrency within institutional finance [1]. The dual focus on healthcare and institutional Bitcoin adoption positions the company as a unique player in the evolving crypto landscape.

Source:

[1] AInvest, [https://www.ainvest.com/news/bitcoin-news-today-kindlymd-closes-200m-convertible-note-buy-bitcoin-2508/](https://www.ainvest.com/news/bitcoin-news-today-kindlymd-closes-200m-convertible-note-buy-bitcoin-2508/)

[2] Holder.io, [https://holder.io/news/kindlymd-200m-convertible-note-bitcoin/](https://holder.io/news/kindlymd-200m-convertible-note-bitcoin/)

[3] AInvest, [https://www.ainvest.com/news/kindlymd-strategic-uplisting-nasdaq-global-market-bitcoin-driven-treasury-innovation-dual-model-catalyst-institutional-credibility-creation-2508/](https://www.ainvest.com/news/kindlymd-strategic-uplisting-nasdaq-global-market-bitcoin-driven-treasury-innovation-dual-model-catalyst-institutional-credibility-creation-2508/)

[4] Fomoed, [https://www.fomoed.io/news/bitcoins-future-as-an-independent-asset-remains-uncertain-amid-golds-continued-dominance-says-mcglone](https://www.fomoed.io/news/bitcoins-future-as-an-independent-asset-remains-uncertain-amid-golds-continued-dominance-says-mcglone)