KindlyMD, a Utah-based healthcare data company turned Bitcoin treasury investor, is taking a bold step to increase its Bitcoin holdings by entering a $250 million secured convertible debt arrangement with Nasdaq-listed crypto services provider Antalpha. The agreement, structured through KindlyMD’s Nakamoto Holdings subsidiary, reflects the growing trend of corporate treasuries strategically leveraging digital assets to strengthen balance sheets while maintaining flexibility in financing.

The five-year convertible note deal, formalized through a non-binding letter of intent, will allow KindlyMD to expand its Bitcoin reserves and fund general corporate purposes. The company emphasized that the structure of the debt offers long-term financing with reduced dilution risk for shareholders compared to standard convertible debt instruments. According to David Bailey, KindlyMD’s Chair and CEO, the partnership “represents the power of Bitcoin companies backing Bitcoin companies,” highlighting the increasing collaboration between corporates in the crypto space.

“This agreement with Antalpha is not just about addressing immediate financing needs,” Bailey explained, “it lays the groundwork for future initiatives tailored to Bitcoin treasury companies, creating opportunities that benefit shareholders and the broader Bitcoin ecosystem.”

Background on KindlyMD and Nakamoto Holdings

KindlyMD pivoted to Bitcoin accumulation in May following its merger with Nakamoto Holdings. Since then, it has become a significant player in the corporate Bitcoin treasury landscape, holding 5,765 BTC valued at approximately $718 million at current market prices. This makes KindlyMD the 19th largest corporate Bitcoin holder globally, according to bitcointreasuries.net.

Despite its growing Bitcoin portfolio, KindlyMD has faced recent market challenges. The company’s stock dropped over 77% in the past month, trading just above $1 per share, its lowest point since late 2024. In a shareholder letter, Bailey acknowledged the potential volatility and advised cautious investors to consider exiting positions, emphasizing the uncertainty that comes with aggressively building a Bitcoin treasury.

The convertible debt with Antalpha is expected to replace a previous $203 million Bitcoin-secured credit from Two Prime Lending Limited, though the prior facility remains available. This strategic move underscores KindlyMD’s commitment to actively managing its corporate treasury while optimizing financing structures that support its Bitcoin accumulation strategy.

The Growing Trend of Corporate Bitcoin Treasuries

KindlyMD’s initiative comes amid an increasing wave of corporate adoption of Bitcoin as a treasury asset. Companies such as Strategy, the world’s largest corporate Bitcoin holder with over 640,000 BTC, have set the precedent by using the cryptocurrency to diversify balance sheets. Strategy recently paused further Bitcoin accumulation to make $140 million in dividend payments, highlighting the balance between liquidity needs and strategic holdings.

The broader trend indicates that corporate treasuries are seeking innovative financial tools, such as convertible debt, to acquire digital assets without immediately diluting equity. This approach allows companies to manage risk while capitalizing on Bitcoin’s potential as a store of value and hedge against macroeconomic uncertainties, such as currency depreciation or market turbulence.

Antalpha’s Role in the Crypto Ecosystem

Antalpha, a Nasdaq-listed crypto services provider, has positioned itself as a partner of choice for corporates seeking to optimize their digital asset portfolios. Through this convertible debt partnership with KindlyMD, Antalpha strengthens its footprint in corporate Bitcoin financing while supporting the growth of a sustainable Bitcoin treasury ecosystem. The collaboration also reflects the convergence of traditional financial structures with emerging digital asset solutions.

In a related development, Antalpha is working with Tether to raise $200 million for a crypto treasury company based on XAUt, Tether’s tokenized gold asset. This demonstrates the company’s commitment to bridging traditional financial value with blockchain-based assets and highlights the increasing institutionalization of digital asset investments.

Bitcoin’s Market Context

Bitcoin has continued to attract attention as a safe-haven asset during periods of macroeconomic uncertainty. Amid a U.S. government shutdown, many investors view BTC as protection against potential declines in the U.S. dollar’s value. Bitcoin recently traded around $124,800, up more than 9% over the past week, though slightly below its all-time high reached over the weekend.

KindlyMD’s strategy leverages this market sentiment, positioning its treasury to benefit from both potential price appreciation and strategic financing opportunities. The convertible debt structure provides flexibility to the company while retaining exposure to Bitcoin’s upside potential, aligning shareholder interests with long-term corporate growth.

Implications for Corporate Finance and Bitcoin Adoption

This partnership between KindlyMD and Antalpha represents a significant step in the evolution of corporate finance within the cryptocurrency ecosystem. By using structured debt to enhance Bitcoin holdings, companies can achieve dual objectives: increasing digital asset exposure and maintaining financial flexibility.

For the Bitcoin market, such deals signal increasing institutional confidence and adoption. As more publicly listed companies pursue structured financing strategies to hold Bitcoin, the cryptocurrency’s credibility and perceived utility as a corporate treasury asset are likely to strengthen.

Moreover, these initiatives highlight the potential for innovation in corporate treasury management. Companies like KindlyMD are demonstrating how digital assets can be incorporated into traditional financial frameworks, combining risk management, capital efficiency, and strategic growth potential.

Conclusion

KindlyMD’s $250 million convertible debt arrangement with Antalpha underscores the growing intersection of corporate finance and digital asset management. By strategically leveraging its Bitcoin treasury, KindlyMD aims to expand its holdings, support corporate initiatives, and strengthen its position in the rapidly evolving Bitcoin ecosystem.

As corporate adoption of Bitcoin accelerates, partnerships like this could pave the way for new financial structures that combine the stability of traditional instruments with the growth potential of digital assets. For investors and market observers, KindlyMD’s approach offers a blueprint for how companies can navigate volatility while capitalizing on the institutionalization of Bitcoin.