Bitcoin firm Nakamoto extends $165M loan as stock value falls below debt
David Bailey’s Bitcoin treasury company Nakamoto has secured an extension on its $165 million loan from Kraken, pushing all remaining principal payments into 2027 as the company’s stock market value falls below its outstanding debt.
Summary
- Nakamoto extended its Kraken loan maturities into 2027, eliminating scheduled principal repayments during 2026 entirely.
- Nakamoto owes Kraken 165 million USDT, exceeding its approximately $104 million stock market valuation Thursday.
- Nakamoto pledged 3,030 Bitcoin worth approximately $208 million at Friday’s reference price near $68,800 per coin.
- Kraken will count eligible Bitcoin derivatives toward collateral requirements, with negative net values treated as zero.
- Nakamoto held 4,283 Bitcoin in September after selling cryptocurrency to reduce debt and support operations.
According to a November 12 SEC filing, Nakamoto (NASDAQ: NAKA) signed an amended agreement with Kraken on Wednesday, postponing a $60 million repayment originally due in December 2026. The company owes 165 million USDT, while its shares closed Thursday at $5.79, giving it a market capitalization of nearly $104 million.
The agreement comes as Bitcoin trades below $69,000, putting pressure on Nakamoto’s holdings, which serve as collateral for the loan. Nearly 71% of the company’s Bitcoin was pledged to Kraken at the end of September.
Nakamoto pushes $165M Kraken loan repayments into 2027
Under the revised agreement, Nakamoto will repay 60 million USDT on December 4, 2027, instead of December 4, 2026. The remaining 105 million USDT will mature on June 30, 2027.
The extension means Nakamoto has no scheduled principal repayments under the Kraken facility for the remainder of 2026. The company received the financing through its subsidiary, Nakamoto Holdings, with Payward Interactive, which operates Kraken, serving as the lender.
In a company statement, Nakamoto Chief Investment Officer Tyler Evans said the revised terms would give management more time to manage its obligations.
“This amendment extends our runway and makes our collateral position more resilient,” Evans said.
He explained that the company expects the arrangement to provide more flexibility during Bitcoin price fluctuations while management focuses on its operating businesses and cryptocurrency holdings.
Nakamoto’s debt originally stood at 210 million USDT under a financing arrangement established in December 2025. In June, the company reduced that amount by 45 million USDT after selling Bitcoin and derivatives.
As crypto.news previously reported, the transaction generated approximately $48 million in net proceeds, with most of the money going toward debt repayment.
Bitcoin price decline reduces Nakamoto’s collateral value
Nakamoto’s quarterly financial report shows that the company held 4,283 BTC as of September 30, including 3,030 BTC pledged against its Kraken loan.
Those pledged coins had a reported value of approximately $253.2 million when Bitcoin traded near $83,565.
With Bitcoin trading around $68,800 on Friday, the same 3,030 BTC would be worth approximately $208.5 million. That represents roughly 126% of the outstanding $165 million principal.
The company retained another 1,253 BTC outside the collateral arrangement at the end of September. At Friday’s reference price, those holdings would be worth approximately $86.2 million.
Nakamoto’s financial statements show a total Bitcoin acquisition cost of $506.3 million, equivalent to approximately $118,200 per coin across its September holdings. Its Bitcoin had a reported fair value of $357.9 million at quarter-end.
The company warned that further Bitcoin price declines could reduce its available liquidity and affect its ability to meet financial obligations.
Under the loan agreement, Nakamoto must repay part of its debt, provide additional Bitcoin collateral, or both if the collateral falls below the required maintenance threshold.
A further decline below the contractual liquidation threshold could trigger an event of default, allowing Kraken to sell pledged Bitcoin.
Kraken agrees to count Bitcoin options toward loan collateral
The amendment changes how Kraken assesses the collateral supporting Nakamoto’s debt.
Under the new terms, Kraken can include the net value of the company’s Bitcoin derivatives positions when calculating collateral maintenance and liquidation requirements.
Kraken will assess those positions daily. If their combined value becomes negative, the lender will count them as zero for these calculations.
Nakamoto said the arrangement could help protective options offset losses in pledged Bitcoin before the company needs to provide additional collateral.
At September 30, the company held put options covering 2,000 BTC with a $55,000 strike price and a December 25 expiration.
It had written call options covering 2,150 BTC at prices ranging from $80,000 to $110,000. Those contracts allowed Nakamoto to collect premiums while limiting potential gains on the covered positions.
The company reported a net derivatives liability of approximately $6.45 million at quarter-end, meaning the positions would have contributed no positive collateral value under the amended calculation.
Nakamoto has reduced Bitcoin holdings to manage debt
Nakamoto has already sold portions of its Bitcoin treasury to fund operations and reduce borrowing.
The company sold 284 BTC during the first quarter of 2026, while another sale of approximately 600 BTC and certain derivatives helped finance its June repayment.
Its earlier Bitcoin sales followed a restructuring that moved the former KindlyMD business toward cryptocurrency investments and Bitcoin-related operations.
Nakamoto now operates businesses covering financial services, asset management and Bitcoin media through BTC Inc. and UTXO Management.
The company reported $19.4 million in cash and cash equivalents at September 30. Its quarterly filing said operating activities consumed $36.8 million in cash during the first nine months of 2026, compared with $15.9 million during the corresponding period in 2025.
