Utah-based KindlyMD announced Tuesday it has entered a loan agreement with Payward Interactive, the company operating Kraken crypto exchange. The company's wholly-owned subsidiary Nakamoto Holdings closed a $210 million USDT-denominated loan facility with Kraken on Dec. 9.
The one-year fixed-term loan carries an annual fee of 8.00% and matures on Dec. 4, 2026. The loan facility is secured by Bitcoin collateral worth a minimum of $323.4 million, held in custody by Kraken-affiliated Payward Financial under a shared account control agreement across the three parties.
Debt Restructuring and Strategic Shift
KindlyMD will use proceeds from the Kraken loan to satisfy its obligations in full under the outstanding term loan facility with Antalpha Digital, according to SEC disclosure. This effectively ends KindlyMD's relationship with the Singapore-based fintech firm and shifts its borrowing to Kraken.
KindlyMD and Antalpha formed a strategic partnership in October, where Nakamoto issued five-year $250 million secured convertible notes to Antalpha. By repaying the Antalpha loan in full, the company is restructuring its debt arrangements with a new lending partner.
Business Model Pivot to Digital Assets
KindlyMD, originally a healthcare firm, completed its merger with Nakamoto Holdings in August to focus on operating a Bitcoin treasury vehicle. The company has since pivoted its core business model toward digital asset accumulation and management.
Financial Performance and Treasury Management
KindlyMD (NAKA) closed up 3.5% on the Nasdaq on Tuesday at $0.47. The loan agreement with Kraken provides the company with additional capital flexibility while maintaining its Bitcoin-focused strategy and treasury operations under revised financing terms.
By the end of September, the company purchased 5,765 Bitcoin at an average price of $118,204 per Bitcoin. After utilizing 367 Bitcoin for investments, the company held 5,389 Bitcoin as of Nov. 12, demonstrating active treasury management alongside borrowing activities.