13th May 2025 > > Nakamoto Holdings, Inc. & Coinbase Global, Inc.

tl;dr

Nakamoto Holdings, Inc. has a grand plan though we can only watch from the sidelines. Coinbase Global, Inc. has equally grand plans, and we are all involved.

Market Snap

Market Wrap

A brief foray above $105k was met with some significant profit-taking which is to be expected with a near 40% price increase in under five weeks from the $75k lows at the beginning of April. It will be interesting to see if the very large and recent inflows to the spot BTC ETFs suffer a minor reversal with prices back into the six figures. If not, this bout of profit-taking may well prove to be short-lived.

Curious Cryptos’ Commentary – Nakamoto Holdings Inc. (“Nakamoto”)

Nakamoto, a company founded by serial crypto entrepreneur David Bailey, has a simple mission in life. Its objective is to build a global network of BTC treasury companies. The list of companies that have started down this route grows ever longer, with Strategy Inc. dominating the combined impact of all the others. Perhaps David wants to challenge Strategy’s hegemony:

“Traditional finance and Bitcoin-native markets are converging. The securitization of Bitcoin will redraw the world’s economic map. We believe a future is coming where every balance sheet – public or private – holds Bitcoin. Nakamoto seeks to be the first publicly traded conglomerate designed to accelerate that.” (Emphasis all mine).

Now that is a vision the CCC can sign up to every day of the week.

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Nakamoto has inked its first deal, via a proposed merger with KindlyMD, a “patient-first healthcare and healthcare data company redefining value-based care and patient-centered medical services” for abusers of opioids, a most worthy cause:

https://www.businesswire.com/news/home/20250511707064/en/David-Bailey-and-Bitcoin-Native-Holding-Company-Nakamoto-Announce-Merger-with-KindlyMD-to-Establish-Bitcoin-Treasury

KindlyMD will continue to operate as before but now as a subsidiary of the newly created company, with a Board of Directors dominated by the current officers of Nakamoto. I think we can safely assume this will be the model going forward. I look forward to reporting an ongoing flurry of additions to this burgeoning network of BTC treasury companies.

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Back to that ambitious vision of David’s.

There are two US states which are now authorised to own BTC as a reserve asset. And that’s just the start. It seems likely that the US government will join them, encouraging other sovereign states, and sovereign wealth funds to make the same move. Indeed, it would be a surprise if that wasn’t already happening under the radar – there are frequent rumours that Saudi Arabia has begun accumulating BTC quietly, with no fanfare. Pension funds are increasingly getting involved. Access to liquid and secure ETFs for retail grows daily, as asset managers come to realise that spot BTC ETFs must form a core part of their product offering if they wish to avoid fading into irrelevance.

If only a small part of David’s vision comes to fruition, we are all still early to the BTC revolution.

Curious Cryptos’ Commentary – Coinbase Global, Inc. ("Coinbase")

I assume that every crypto enthusiast/investor owns a stash of Coinbase shares, preferably within a tax-free wrapper. You should expect no dividends, but significant capital gains might be on offer. Coinbase is not only one of the most recognised of names within the centralised cryptocurrency exchange space, but it has its own Layer 2 (Base), which will one day have its own coin. Coinbase recently paid many billions of dollars for Deribit, a futures and options exchange. There is a Coinbase self-custody wallet, and it has partnered with Circle and stablecoin USDC, the best and most secure stablecoin out there. Coinbase will likely remain a central feature of the crypto industry for a very long time.

Coinbase will now join the S&P 500 which is rather spiffing news. There are some funds and some individuals who are restricted, either by choice or for other reasons, from only investing in companies within the main indices, who will now get involved. But that’s not the exciting bit.

The rise of passive investing enabled by stock ETFs that mimic the main indices in holdings and performance versus active investing is a notable feature of our times. Every single one of those tracker funds will soon be buying COIN hence the near 10% price increase just yesterday with more to come, all other things being equal. Every single investor that uses trackers (that’s damn near all of them by the way) will now be starting or increasing their (indirect) exposure to the crypto revolution.

These are exciting times for us all.cryptos, we would all reap the benefits.