Why does Nakamoto still employ a Chief Medical Officer?

Nakamoto retained the role because the company originated from a reverse merger with KindlyMD, a healthcare business specialising in pain management. The medical executive oversees the remaining healthcare operations inside the merged company.

Why are investors criticising Nakamoto’s corporate structure?

Critics argue the company’s healthcare operations look unusual for a Bitcoin treasury firm and point to mounting losses, debt and shareholder dilution. The Chief Medical Officer role became a symbol of broader concerns around corporate complexity and spending.

Who is David Bailey and what did he say about the controversy?

David Bailey said the healthcare division remains important because it generates recurring revenue and helps Nakamoto maintain Nasdaq listing compliance. He also said the company cannot operate as a shell entity under exchange rules.

What is Nakamoto’s main business strategy now?

Nakamoto is positioning itself as a Bitcoin treasury company focused on accumulating and holding Bitcoin. The firm also maintains legacy healthcare operations inherited through the KindlyMD merger.

How much Bitcoin does Nakamoto currently hold?

The company reportedly holds about 5,058 BTC. Investors are monitoring those holdings closely as Bitcoin treasury firms increasingly compete on the size of their crypto reserves.

Why are investors worried about shareholder dilution at Nakamoto?

Nakamoto completed acquisitions involving BTC Inc. and UTXO Management that significantly increased the number of shares outstanding. Critics said the deals diluted existing shareholders by roughly 58% in a single quarter.

Why did Nakamoto conduct a reverse stock split?

The company implemented a 1-for-40 reverse stock split to regain Nasdaq compliance after its share price fell below the exchange’s minimum listing threshold. Reverse splits reduce the number of shares while increasing the price per share.

How large were Nakamoto’s recent losses?

Nakamoto reportedly posted a net loss of about $238 million during the first quarter of 2026 while generating only around $2.3 million in operating revenue. The figures intensified concerns about sustainability and cash burn.

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Nakamoto defends keeping doctor on payroll

Written by Liezl GambePublished May 25, 2026, 2:52 AM

Nakamoto defended its decision to retain a Chief Medical Officer after critics highlighted the unusual role within a corporate Bitcoin treasury business.

The criticism emerged as investors questioned the company’s operating structure following a steep decline in NAKA shares and mounting concerns over debt, dilution and losses across the digital asset treasury sector.

Chief executive David Bailey said the medical executive position remained because Nakamoto originated from a reverse merger with KindlyMD, a Utah-based pain management business.

Bailey said KindlyMD founder Tim Pickett continued serving as Chief Medical Officer to oversee the healthcare subsidiary, which still generates most of Nakamoto’s recurring operating revenue.

According to Bailey, maintaining an active operating business also helps the company satisfy Nasdaq listing requirements and avoid classification as a shell company.

The controversy intensified after analysts highlighted Nakamoto’s reported $238 million net loss during the first quarter of 2026 despite generating only about $2.3 million in operating revenue.

Critics also pointed to roughly $7.3 million in insider compensation and concerns surrounding shareholder dilution following acquisitions involving BTC Inc. and UTXO Management.

Nakamoto later implemented a 1-for-40 reverse stock split to regain Nasdaq compliance, while investors continue monitoring the company’s roughly 5,058 BTC holdings, debt obligations and upcoming financial disclosures.

At the time of reporting, Bitcoin price was $77,034.61.