Nakamoto Inc. (NAKA) has just issued a statement explaining why a Bitcoin (BTC) management company continues to pay a salary for a Chief Medical Officer position. This position has become a hot topic in the community, with skeptics calling it "overspending" by Digital Asset Treasury (DAT) firms.
Experts point to this unusual position in the context of NAKA's stock having plummeted 99% in value and the company carrying approximately $200 million in debt. CEO David Bailey stated that this position exists because the company originated from a reverse merger.
Why does a Bitcoin management company still keep doctors on its staff?
NAKA was originally KindlyMD – a pain management service provider in Utah, USA. The company was listed on Nasdaq before merging with Nakamoto Holdings (Bailey's privately held company) in 2025.
Tim Pickett, the founder of KindlyMD, continues to serve as Chief Medical Officer to lead the healthcare subsidiary that Capital been a part of his legacy.
Nakamoto's team. Source: Wazz on X"We have a chief medical officer because we merged with a healthcare company, and maintaining the business is a prerequisite for listing on the Nasdaq," explained David Bailey, CEO and chairman of Nakamoto.
This healthcare segment generates the majority of Nakamoto's recurring revenue and helps the company avoid being XEM as a "shell" company.
This is just one of many healthcare companies that are rebranding as crypto-related companies by 2025.
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Share dilution and losses fueled criticism.
The position of Chief Medical Officer became a subject of ridicule as other concerns emerged. Analyst Justin Bechler pointed out this in Nakamoto's Q1 2026 report – the company recorded a net loss of $238 million.
Operating revenue reached only $2.3 million, while internal executives received a total of $7.3 million in compensation.
The company also acquired BTC Inc. and UTXO Management from Bailey himself, along with Chief Investment Officer Tyler Evans.
This transaction diluted the public shareholder stake by 58% in just one quarter, raising concerns about further share dilution across the entire Bitcoin Treasury management industry .
Subsequently, shareholders approved a reverse stock split at a ratio of 1 to 40 to meet the minimum price requirement of $1 on Nasdaq. The stock split took effect on May 22nd, raising NAKA's price from approximately $0.16 to nearly $6.
This also reduced the number of outstanding shares from 696 million to 17.4 million.
The first release of locked insider shares will take place on August 20th, coinciding with the release of the Q2 10-Q earnings report. This will be the time to examine XEM the revenue from the Bitcoin 2026 conference truly justifies the added value from the BTC Inc. acquisition.
Investors, especially retail investors, are closely watching the ongoing losing streak of the DAT industry and Nakamoto's earlier loss-making BTC sales , while focusing on the company's actual business performance.
The 5,058 BTC that the company currently holds will no longer be of much significance for the next two quarters.
