Nakamoto Extends Maturity of $60 Million USDT Tranche of $165 Million Loan to 2027
Key Facts
Nakamoto extended the term of a $60 million USDT tranche of an existing $165 million USDT loan, moving its maturity from December 4, 2026, to December 4, 2027. The company said in a filing with the U.S. Securities and Exchange Commission that the amendment was entered into on November 11 by its subsidiary Nakamoto Holdings with Payward Interactive, the operator of the Kraken platform. The extension applies to part of the loan issued in June 2026 and does not change the maturity date of the full balance. Under the revised schedule, $105 million USDT is due on June 30, 2027, while the $60 million tranche is due on December 4 of the same year. As a result, no principal is scheduled for repayment in 2026, while repayments are concentrated in the second half of 2027.
The amendment to the collateral terms allows the net value of the company’s bitcoin derivatives positions held at Kraken to be counted in the collateral account, subject to restrictions. The filing states that the value counted for these positions cannot be less than zero, meaning a negative value is not added to collateral. The change does not waive collateral maintenance requirements; if collateral value falls below the applicable threshold, the borrower must repay part of the loan, provide additional bitcoin or do both. If the value falls below the liquidation threshold, the loan agreement is in default and Kraken is entitled to liquidate the pledged bitcoin. Nakamoto said a decline in bitcoin prices could lead to a repayment or additional collateral call, or to a default and liquidation of assets at unfavorable prices.
The company’s results for the third quarter ended September 30 show a widening gap between accounting profit and operating performance. It reported net income of $85.5 million, compared with a net loss of $86 million in the same quarter a year earlier. The company attributed GAAP operating income of $91.9 million mainly to a $110.4 million gain from changes in the fair value of digital assets. By contrast, adjusted operating loss was $15.8 million. Operating businesses also generated revenue of $3.9 million, but total operating revenue was negative $1.9 million after net derivatives revenue of negative $5.8 million.
As of September 30, Nakamoto said total debt was $164.9 million, compared with cash and cash equivalents of $19.4 million, and that its net leverage-to-digital-assets ratio was 41%. The company estimated its market capitalization at the time at $173.6 million, based on a share price of $9.46, with outstanding debt included in the enterprise value calculation. In the November 12 session, NAKA shares closed at $5.79, according to EL7 data. Investing.com reported on November 13, citing Reuters, an estimated market capitalization of $112 million and total debt of $165 million, describing the debt burden as substantial. These dated figures differ from quarter-end measurements, and the closing share price alone is not a measure of the company’s asset value or ability to repay.
The amendment follows an earlier refinancing in June, when the company said it had reduced outstanding debt by about $45 million by selling about 600 bitcoin and derivatives positions, generating net proceeds of about $48 million. It said at the time that the interest rate ranged from 8% to 7.75% annually, depending on whether a base collateral threshold of 2,000 bitcoin was met, and estimated annual financing cost savings at about $4 million. In its business operations, the company said BTC Inc launched Bitcoin Magazine TV on September 14 to expand its media business into daily live coverage. Chief Executive David Bailey said the company launched the channel to add year-round sponsorship revenue, expanded UTXO’s structured credit business, and held the Bitcoin Asia event in Hong Kong. These developments show the business lines the company is pursuing alongside management of its obligations and collateral.
The company set the date for its Intelligence 2027 event in San Francisco for April 22 and 23, 2027. It said it will continue to manage its bitcoin holdings and obligations due during 2027, while acknowledging that its ability to repay or refinance is uncertain. The revised loan schedule places maturities in June and December of that year, instead of the extended tranche’s December 2026 maturity. The value of collateral and its trajectory remain relevant to the obligations that may arise for the company under the loan terms. The value of bitcoin derivatives counted as collateral remains subject to the restrictions in the amendment, while Kraken retains the right to liquidate when its contractual threshold is reached.