Bitcoin treasury firm Nakamoto pushed all principal repayments on its $165 million Kraken loan into 2027 as its market cap slipped below the debt amount.
David Bailey’s Bitcoin‑focused treasury company Nakamoto announced on November 12 that it has renegotiated its $165 million USDT loan with Kraken, postponing all scheduled principal repayments until 2027. The amendment comes as the company’s NASDAQ‑listed shares closed at $5.79, valuing the firm at roughly $104 million—significantly less than the debt it owes.
Under the new agreement, the $60 million installment originally due on December 4 2026 will now be paid on December 4 2027, while the remaining $105 million matures on June 30 2027. No principal payments are required for the rest of 2026, giving Nakamoto a longer runway to manage its obligations, according to the company’s filing with the SEC.
Nakamoto has pledged 3,030 BTC as collateral for the loan, valued at about $208 million based on Friday’s reference price of $68,800 per coin. This represents roughly 126% of the outstanding principal, a decline from a prior valuation of $253 million when Bitcoin traded near $83,500. The firm holds an additional 1,253 BTC outside the pledged pool, worth approximately $86 million at the same price.
The amendment also changes how Kraken assesses collateral, allowing the net value of Nakamoto’s Bitcoin derivatives to be counted. The company reported put options covering 2,000 BTC with a $55,000 strike and call options on 2,150 BTC ranging from $80,000 to $110,000. At quarter‑end, the net derivatives liability was about $6.45 million, meaning the positions contributed no positive collateral value under the new calculation.
Nakamoto’s next filing will reveal whether the firm can maintain the required collateral ratio as Bitcoin prices fluctuate. A further decline below Kraken’s liquidation threshold could trigger a default event, allowing the lender to liquidate pledged Bitcoin. Observers will also monitor any additional asset sales or refinancing efforts the company may pursue to shore up liquidity.
If the collateral value drops below the required level, Kraken can declare an event of default and may sell the pledged Bitcoin to recover the loan.
The $60 million installment is now due on December 4 2027, and the remaining $105 million is due on June 30 2027.
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