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By Krisztian Sandor, James Van Straten, AI Boost|Edited by Stephen Alpher
Aug 18, 2025, 7:37 p.m.
- KindlyMD late Friday closed on a $200 million convertible note offering, with proceeds intended to buy more bitcoin .
- The convertible notes have no interest for the first two years, then a 6% annual rate.
- Yorkville Advisors can convert the debt into equity at an initial price of $2.80 per share, raising dilution concerns.
KindlyMD (NAKA), the Nasdaq-listed firm that’s recently merged with bitcoin
treasury firm Nakamoto closed a$200 million convertible noteoffering late Friday.
The convertible notes bear no interest in the first two year, then they carry a 6% annual rate starting in year three until maturity in 2028. The firm intends to use the funds to buy additional bitcoin.
STORY CONTINUES BELOW
The financing, arranged with Yorkville Advisors’ YA II PN fund, was structured with some unusual terms, CoinDesk senior analyst James Van Straten noted.
Yorkville can convert the debt into equity at an initial price of $2.80 per share, raising concerns of dilution if the lender opts to convert into stock. Nakamoto/KindlyMD also needs to put up twice the size of the principal in BTC as collateral, offering the lender a robust downside protection.
NAKA shares were lower by 11.2% on Monday alongside news of the convertible capital raise and a weekend decline in the price of bitcoin. Other bitcoin treasury strategies were in the red as well, but the declines were more muted. Strategy (MSTR) and Semler Scientific (SMLR), for instance, were each down a bit more than 1%.
Read more: Michael Saylor’s Strategy Added $51M of Bitcoin Last Week
Disclaimer: Parts of this article were generated with the assistance from AI tools and reviewed by our editorial team to ensure accuracy and adherence to our standards. For more information, see CoinDesk’s full AI Policy.
Krisztian Sandor is a U.S. markets reporter focusing on stablecoins, tokenization, real-world assets. He graduated from New York University’s business and economic reporting program before joining CoinDesk. He holds BTC, SOL and ETH.
James Van Straten is a Senior Analyst at CoinDesk, specializing in Bitcoin and its interplay with the macroeconomic environment. Previously, James worked as a Research Analyst at Saidler & Co., a Swiss hedge fund, where he developed expertise in on-chain analytics. His work focuses on monitoring flows to analyze Bitcoin’s role within the broader financial system.
In addition to his professional endeavors, James serves as an advisor to Coinsilium, a UK publicly traded company, where he provides guidance on their Bitcoin treasury strategy. He also holds investments in Bitcoin and Strategy (MSTR).
“AI Boost” indicates a generative text tool, typically an AI chatbot, contributed to the article. In each and every case, the article was edited, fact-checked and published by a human. Read more about CoinDesk’s AI Policy.
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3 hours ago
Stellar’s XLM dropped 6% in under 24 hours as institutional selling overwhelmed the market, with heavy liquidations setting resistance at $0.42 and leaving prices stagnant near $0.41.
What to know:
- XLM slid 6% from $0.43 to $0.41 between Aug. 17–18 amid heavy institutional selling, with trading volumes topping $30 million.
- Major liquidation saw more than 60 million tokens sold overnight on Aug. 18, establishing strong resistance at $0.42 and support near $0.41.
- Final-hour weakness added a further 1% decline as selling pressure intensified, leaving XLM stagnant at $0.41 with limited buying interest.
