KindlyMD Completes $200 Million Convertible Note Offering for Bitcoin Purchase
KindlyMD (NAKA), recently merged with Nakamoto, closed a $200 million convertible note offering.
- The notes have no interest for the first two years and a 6% annual rate starting in year three until maturity in 2028.
- Funds will be used to purchase additional bitcoin.
- The financing was arranged with Yorkville Advisors’ YA II PN fund and includes unique terms.
- Yorkville can convert debt into equity at an initial price of $2.80 per share, raising potential dilution concerns.
- Nakamoto/KindlyMD must provide collateral amounting to twice the principal in BTC.
- NAKA shares dropped by 11.2% following the news and a decline in bitcoin prices.
- Other bitcoin treasury strategies also saw minor declines, with MSTR and SMLR down over 1%.