TLDR Tech / Crypto
The Nakamoto Heist
David Bailey merged Nakamoto Holdings into public shell KindlyMD in May 2025, raising $710M at $1.12/share while retail investors bought in at $28-31. The stock pumped to 23x NAV before collapsing 99% to $0.29, generating $97M in quarterly losses, including $14.45M in debt extinguishment costs from cycling through three lenders in a single week. Amid the collapse, Bailey exercised a call option embedded in the original merger documents to acquire Bitcoin Magazine, Bitcoin Conference, and UTXO Management using 363.6M shares priced at $1.12, approximately 4x the current market price, consolidating his entire media, events, and hedge fund operation into the public vehicle at insider-favorable terms. The company now faces Nasdaq delisting risk for failing the $1 minimum bid price threshold with a June 8 deadline, while simultaneously having filed a $5B at-the-market equity offering with the SEC.
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