KindlyMD, Inc. (NASDAQ: NAKA), a healthcare service provider and Bitcoin treasury vehicle through its subsidiary Nakamoto Holdings, has announced a strategic partnership with Antalpha (NASDAQ: ANTA), a fintech firm specializing in digital asset financing, technology, and risk management. This collaboration marks a significant step towards developing innovative financing structures for companies that hold Bitcoin as a treasury asset and aims to support the broader adoption of Bitcoin among public corporations.

A central element of this partnership is a non-binding letter of intent under which Nakamoto plans to issue $250 million in five-year secured convertible notes to Antalpha. These convertible notes are designed to provide long-term financing for KindlyMD, offering a lower dilution risk for stockholders compared to traditional convertible debt instruments. The substantial proceeds generated from this facility will be allocated to several key areas: expanding Bitcoin holdings within the Nakamoto Bitcoin Treasury, funding general corporate purposes, and replacing a previous $203 million Bitcoin-backed credit facility from Two Prime Lending Limited. While being replaced for current needs, the prior facility will remain available for future strategic uses.

In the interim, pending the finalization of the convertible debt facility, Antalpha will extend an interim Bitcoin-backed loan to KindlyMD. This interim financing is intended to ensure seamless support for KindlyMD’s treasury operations during the transition period. Antalpha, already a leader in financial services for the Bitcoin mining supply chain, is now extending its specialized expertise beyond mining operations to cater to organizations actively managing Bitcoin as a reserve asset within their corporate treasuries.

Company leadership has emphasized the profound strategic importance of this partnership, aligning it directly with their long-term vision. David Bailey, Chairman and CEO of KindlyMD, articulated the spirit of the collaboration as “the power of Bitcoin companies backing Bitcoin companies.” He highlighted that this initiative not only addresses immediate financing requirements but also establishes a foundational framework for future endeavors that will benefit both KindlyMD and the broader Bitcoin ecosystem. From Antalpha’s perspective, the partnership is a testament to a shared vision regarding Bitcoin’s pivotal role in corporate treasury strategies.

Dr. Derar Islim, COO and CEO of Antalpha Americas & EMEA, stated that Antalpha is dedicated to bridging the existing gap between conventional financial structures and the unique realities of managing Bitcoin reserves. He views this agreement as the initial phase of an ongoing collaboration focused on developing scalable solutions for companies managing Bitcoin treasuries. This announcement closely follows a September 15 shareholder letter from Bailey, which underscored the company’s commitment to aligning shareholders and financial partners to support KindlyMD’s long-term investment strategy. Since that time, the company has consciously moved away from earlier financing arrangements that did not fully align with this strategy, instead prioritizing partners who share its dedication to long-term growth and the wider adoption of Bitcoin as a corporate asset.

Nakamoto Holdings is also in partnership with Bitcoin Magazine’s parent company BTC Inc, where BTC Inc provides certain marketing services to Nakamoto as part of building the first global network of Bitcoin treasury companies.