Nakamoto Corporation (NAKA) has defended why the Bitcoin (BTC) treasury company is keeping a chief medical officer on its payroll. This role has spread as a symbol of what skeptics call a surplus digital asset treasury (DAT).
Analysts point to this role along with the collapse of NAKA’s 99% stake and a debt load of approximately $200 million. CEO David Bailey responded that the medical position exists for reasons rooted in the origin of the company’s reverse merger.
Why does a Bitcoin treasury company keep a doctor on staff?
NAKA started out as KindlyMD, a pain management services company in Utah. It was listed on the Nasdaq stock exchange before merging with Bailey’s private holding company Nakamoto in 2025.
Tim Beckett, who founded KindlyMD, remains 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 a business is a requirement for a Nasdaq listing.” He explained David Bailey, CEO and Chairman of Nakamoto.
The healthcare arm generates the bulk of Nakamoto’s modest recurring revenue and helps the company avoid shell company designation.
It’s one of many Renaming medical companies In crypto vehicles in 2025.
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Dilution and losses fuel the backlash
The CMO has become a controversial topic as concerns grow more widely. Analyst Justin Bechler highlighted Nakamoto’s first-quarter 2026 10-Q report, which reported a net loss of $238 million.
Operating revenue was $2.3 million while insiders received $7.3 million in compensation.
The company also acquired BTC Inc. and Bailey’s UTXO Management and CIO Tyler Evans.
The deal diluted public shareholders by 58% in one quarter, stoking its run Shareholder dilution concerns via Bitcoin treasury sector.
Shareholders later authorized a 1-for-40 reverse stock split to restore compliance with Nasdaq’s $1 minimum bid. The split went into effect on May 22, raising NAKA from approximately $0.16 to approximately $6.
It also squeezed 696 million outstanding shares to 17.4 million shares.
The first internal insurance tranche will be released on August 20, and the Q2 10-Q tranche lands the same month. Both will test whether the revenues from the Bitcoin 2026 conference can justify the goodwill from the acquisition of BTC Inc.
Investors are constantly watching DAT sector losses and Nakamoto’s previous Bitcoin sale It focuses on the operating line.
Major holdings of 5,058 BTC are less significant over the next two quarters.
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