Nakamoto Inc. (NAKA) has defended why a Bitcoin (BTC) treasury company keeps a Chief Medical Officer on payroll. The role went viral as a symbol of what skeptics call Digital Asset Treasury (DAT) excess.
Analysts point to the role alongside NAKA’s 99% share collapse and roughly $200 million debt load. CEO David Bailey responded that the medical position exists for reasons rooted in the company’s reverse merger origin.
Why a Bitcoin Treasury Firm Keeps a Doctor on Staff
NAKA began as KindlyMD, a Utah-based pain management provider. It listed on Nasdaq before merging with Bailey’s private Nakamoto Holdings in 2025.
Tim Pickett, who founded KindlyMD, stayed on as Chief Medical Officer to run the legacy healthcare subsidiary.
“We have a chief medical officer because we merged with a healthcare company and maintaining an operating business is a Nasdaq listing requirement,” explained David Bailey, Nakamoto’s CEO and chairman.
The healthcare arm generates the bulk of Nakamoto’s modest recurring revenue and helps the company avoid shell-company classification.
It is one of several medical firms rebranded into crypto vehicles in 2025.
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Dilution and Losses Fuel the Backlash
The CMO became a punchline as wider concerns intensified. Analyst Justin Bechler highlighted Nakamoto’s Q1 2026 10-Q, which reported a $238 million net loss.
Operating revenue was $2.3 million while insiders received $7.3 million in compensation.
The company also acquired BTC Inc. and UTXO Management from Bailey and CIO Tyler Evans.
The deal diluted public holders by 58% in one quarter, fueling shareholder dilution concerns across the Bitcoin treasury sector.
Shareholders later authorized a 1-for-40 reverse stock split to restore Nasdaq’s $1 minimum bid compliance. The split took effect May 22, lifting NAKA from around $0.16 to roughly $6.
It also compressed 696 million outstanding shares into 17.4 million.
The first insider lock-up tranche releases August 20, and the Q2 10-Q lands the same month. Both will test whether Bitcoin 2026 conference revenue can justify the goodwill from the BTC Inc. acquisition.
Investors watching ongoing DAT sector losses and Nakamoto’s earlier BTC sale are focused on the operating line.
The 5,058 BTC headline holdings matter less for the next two quarters.
