KindlyMD, Inc. (NASDAQ:NAKA) has announced a strategic partnership with fintech firm Antalpha Platform Holding Co. (NASDAQ: ANTA) to set up a $250 million convertible debt facility. The aim is to create new financing options for companies that hold Bitcoin (BTC) as part of their treasury.
As part of the deal, KindlyMD’s subsidiary, Nakamoto Holdings, has signed a non-binding letter of intent to issue $250 million in five-year secured convertible notes to Antalpha. The funds are intended to provide long-term financing, expand Nakamoto’s Bitcoin holdings, and support general corporate purposes.
The proceeds will also replace a prior $203 million Bitcoin-backed credit from Two Prime Lending, though that facility will remain available. Until the new facility is finalized, Antalpha will provide an interim Bitcoin-backed loan to meet funding needs.
Although the plan may bring long-term funding with arguably lesser dilution to shareholders, it is not without risks. The deal remains non-binding, and items like conversion terms, security, and covenants are yet to be set. Market witnesses will be keen on the executed agreement and timing of the funding.
Strategy and leadership on the move
KindlyMD has had a tough time in the markets. Its shares have plummeted in recent weeks, trading at barely more than $1 per share. In spite of this, the company remains committed to expanding its Bitcoin treasury, now worth more than $700 million.
David Bailey, Chairman and CEO of KindlyMD, said, “It’s meaningful to work with a longstanding, mission-aligned Bitcoin company to create financial solutions for Nakamoto and the wider industry. Together with Antalpha, we are not only addressing today’s financing needs, but we are also laying the foundation for future structures tailored to the unique requirements of Bitcoin treasury companies.”
Antalpha’s COO, Dr. Derar Islim, said the partnership with Nakamoto aligns with their vision for the Bitcoin industry. He noted that the deal helps “bridge the gap between traditional financing and the realities of the Bitcoin market” and is just “the first step” toward creating scalable solutions for treasury companies while supporting broader Bitcoin adoption among public firms.
The partnership comes after CEO David Bailey’s September 15 shareholder letter, which stressed aligning with shareholders and financial partners to support KindlyMD’s long-term strategy.
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