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📈 KindlyMD's Soaring Bitcoin Play
Amazon taps FedEx for deliveries, Perplexity valuation rattles Google search, NRG expands amid Texas demand, Tariffs slash deficit to record, Roche commits $700m to US
Evelio Silvera
May 13, 2025
Good morning.
⚡ The Fast Five → Amazon taps FedEx for deliveries, Perplexity valuation rattles Google search, NRG expands amid Texas demand, Tariffs slash deficit to record, Roche commits $700m to US
🔎 Market Trends → US stocks end sharply higher after US-China tariff truce; US Futures Soar as US and China Agree to Lower Tariffs
And now…
⏱️ Your 5-minute briefing for Tuesday, May 13, 2025:
MARKET BRIEF
Before the Open
As of market close 05/12/2025.
Pre-Market
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Fear & Greed
Markets in Review
Truce Turns the Tide: Wall Street Roars After U.S.-China Tariff Suspension
Stocks posted their strongest gains in over four weeks. The S&P 500 surged 3.3% to 5,844.2, the Dow jumped 2.8%, and the Nasdaq soared 4.4%, riding optimism from a major tariff reprieve.
The Big Picture:
Markets breathed a collective sigh of relief after the U.S. and China agreed to pause most reciprocal tariffs for 90 days. The weekend accord, struck in Switzerland, signals a meaningful shift in tone between the world’s largest economies—and investors wasted no time celebrating.
Treasury Secretary Scott Bessent expects further negotiations “in the next few weeks,” underscoring hopes that a more permanent trade framework may emerge. The tariff pause may not end uncertainty, but it lowers the odds of recession and restores investor confidence in growth assets.
Consumer-facing and tech-heavy sectors led the charge, with the Magnificent Seven reaffirming their leadership role.
Market Movers:
Amazon (AMZN) climbed 8.1%, Meta (META) surged 7.9%, and Tesla (TSLA) rallied 6.8%—as reduced tariff pressure revived demand narratives.
NRG Energy (NRG) led the S&P 500 with a 26% gain after announcing a $12B acquisition of LS Power assets.
Harley-Davidson (HOG) rose 5.2% as it lowered its tariff impact estimates post-deal.
Newmont (NEM) dropped 5.9% after trimming its stake in Discovery Silver.
What They’re Saying:
“The tariff cuts likely take a recession off the table for now.” — Wedbush Securities
WHAT WE’RE WATCHING
Events
Today: Bureau of Labor Statistics - Core Consumer Price Index (CPI) m/m; Consumer Price Index (CPI) m/m; Consumer Price Index (CPI) y/y - 8:30am
Why You Should Care: Consumer prices account for a majority of overall inflation. Inflation is important to currency valuation because rising prices lead the central bank to raise interest rates out of respect for their inflation containment mandate.
Earnings Reports
Today: Sony, Under Armour, Sea Limited, MINISO Group
Tomorrow: Cisco Systems, Boot Barn Holdings, Haleon, NexGen Energy
MARKET BRIEF
Leading News
Healthcare-Crypto Merger Signals New Treasury Model
Photo Credit: Andre Francois MacKenzie
Why it matters:
When a little-known healthcare company's stock soars 250% after announcing a bitcoin-centric merger, retail investors should take notice — this represents a new evolution in how public companies are harnessing crypto as a treasury asset.
Zoom Out:
The merger of KindlyMD ($KDLY) with Nakamoto Holdings — spearheaded by David Bailey, a Trump crypto advisor — isn't just another buzzy deal. It's the next iteration of the "bitcoin-as-treasury-strategy" pioneered by MicroStrategy, but with global ambitions and presidential connections.
This $710 million transaction, featuring $200 million in convertible debt and $510 million in PIPE financing at $1.12 per share, attracted bitcoin luminaries like Adam Back and Balaji Srinivasan — suggesting substantial smart money believes in this approach.
Key Insights:
The Strategy² approach: Unlike MicroStrategy's passive holding strategy, Bailey plans to "sell one bitcoin for more than a bitcoin, or buy a bitcoin for less than a bitcoin" while building a network of bitcoin-focused businesses across global markets. The healthcare operation will eventually be minimized.
Presidential proximity matters: Bailey's six White House visits and role as a cryptocurrency advisor to President Trump creates a regulatory moat that few bitcoin companies can claim — potentially providing insight into forthcoming policy decisions.
Capital structure innovation: The zero-coupon convertible notes for the first two years, with a $2.80 conversion price versus the $1.12 PIPE price, creates a unique leverage opportunity if bitcoin continues its upward trajectory (now trading above $102,000).
Market Pulse:
"Bitcoin's emergence as a treasury asset is a natural evolution," notes Constantine Karides, who led the deal's legal structuring, pointing to "strong adoption of alternative and innovative transaction structures."
Bull’s Take:
For investors seeking leveraged bitcoin exposure without directly holding crypto, these bitcoin-treasury plays offer a familiar vehicle with traditional market protections. The premium valuations suggest the market believes a bitcoin-focused public company is worth more than the sum of its parts.
Headlines
Amazon signs up FedEx for residential deliveries (link)
Perplexity's $14 Billion Valuation Ignites Google Search Engine Shakeup (link)
NRG Energy acquires 18 power plants as Texas power demand grows (link)
Tariff receipts topped $16 billion in April, a record that helped cut the budget deficit (link)
TikTok, Meta face tough curbs in Asia even as US efforts stall (link)
Roche plans $700m manufacturing plant in the US (link)
CRYPTO
Fear & Greed
Headlines
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On the Socials
*Hat-tip to HighyieldHarry
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