CoinDesk
David Bailey's Nakamoto (NAKA) now owes crypto exchange Kraken 165 million USDT, a debt larger than the company's entire stock market value of roughly $104 million after shares closed Thursday at $5.79. Under an amendment signed Wednesday and disclosed in an 8-K filing, the 60 million USDT due Dec. 4 has been pushed to Dec. 4, 2027, joining the remaining 105 million USDT due June 30, 2027, leaving nothing to repay this year.
Why it matters
The loan is backed only by Nakamoto's bitcoin, and that collateral is underwater on cost. Its quarterly report shows 3,030 of its 4,283 BTC were pledged to Kraken at the end of September, bought at roughly $118,000 each. With bitcoin now trading under $69,000, the pledged coins are worth about $208 million, roughly 126% of the debt. If the collateral value falls below a set maintenance level, Nakamoto must repay part of the loan, pledge more bitcoin, or both. Only about 1,253 unpledged bitcoin, worth roughly $86 million, remain available to post.
Kraken also agreed to count the net value of Nakamoto's bitcoin derivatives positions toward collateral requirements, which chief investment officer Tyler Evans said "extends our runway and makes our collateral position more resilient." But the book counted for minus $6 million at quarter-end, which would count as zero under the new terms, and the protective puts on 2,000 BTC struck at $55,000 expire Dec. 25, well before the debt comes due.
Market impact
The loan started last December at $210 million and 8% interest. Nakamoto has already sold 284 BTC in March and roughly 600 more in the second quarter, sending $45 million of proceeds back to Kraken. With equity trading below the debt it services, the equity is effectively a leveraged bet on bitcoin recovering before 2027. Watch the maintenance threshold, the December put expiration, and any further forced sales from the remaining 1,253 BTC cushion.
Frequently asked questions
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How much does Nakamoto owe Kraken and what backs the loan?
Nakamoto owes Kraken 165 million USDT on a loan started last December at $210 million and 8% interest. The loan is backed only by the company's bitcoin, with 3,030 of its 4,283 BTC pledged as collateral.
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Why does Nakamoto's debt exceed its market value?
Its shares closed Thursday at $5.79, giving the company a market value of about $104 million, while the Kraken debt totals 165 million USDT. The stock has fallen alongside bitcoin, which the firm bought at roughly $118,000 per coin.
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What did the new amendment change about the repayment schedule?
The 60 million USDT due Dec. 4 now matures Dec. 4, 2027, and the remaining 105 million USDT is due June 30, 2027. Nakamoto has no payments left to make this year.
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What happens if Nakamoto's pledged bitcoin falls below the maintenance level?
Nakamoto would have to repay part of the loan, pledge additional bitcoin, or both. It has about 1,253 unpledged BTC left, worth roughly $86 million at current prices.
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How do Nakamoto's bitcoin options factor into the collateral?
Under the new terms, Kraken counts the net value of Nakamoto's derivatives account toward collateral tests, with negative values counted as zero. The book was worth minus $6 million at quarter-end, and its protective $55,000-strike puts on 2,000 BTC expire Dec. 25.
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