The revised agreement gives Nakamoto until December 2027 to repay $60 million, while the remaining $105 million is due in June 2027
Nakamoto held 4,283 Bitcoin as of September 30, including assets pledged to Kraken
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The Bitcoin treasury firm of David Bailey, Nakamoto, has managed to extend its $165 million (roughly Rs. 1,554 crore) debt with Kraken as the market value of its stocks is now lower than the debt that it owes. On Wednesday, based on an SEC form filed on November 12, Nakamoto (NASDAQ: NAKA) entered into an amendment with Kraken, which will postpone a $60 million (roughly Rs. 565 crore) payment that was set for December 2026. Nakamoto owes 165 million USDT and is trading at $5.79 (roughly Rs. 545) per share, with a market cap of around $104 million (roughly Rs. 980 crore).
The deal is happening as Bitcoin is trading below $69,000 (roughly Rs. 65 lakh), with the price of Bitcoin affecting Nakamoto's investment since it acts as collateral for the loan. As of the end of September, about 71 percent of the company's Bitcoin has been deposited with Kraken. Nakamoto will be required to pay back 60 million USDT by December 4, 2027, in place of December 4, 2026 under the new agreement, while 105 million USDT is due for maturity on June 30, 2027.
The extension indicates that Nakamoto has no principal payments for the rest of 2026 for its Kraken loan. Nakamoto obtained the financing through its subsidiary Nakamoto Holdings, with the Payward Interactive, which runs Kraken, being the lender. In a statement released by Nakamoto, Chief Investment Officer Tyler Evans stated that the amended agreement will give the management more time to deal with their obligations. “This amendment extends our runway and makes our collateral position more resilient,” Evans said.
In Nakamoto's quarterly financial report, the company had 4,283 BTC as of September 30, which includes 3,030 BTC pledged for the company's Kraken loan. These pledged BTCs were worth around $253.2 million (roughly Rs. 2,385 crore) when Bitcoin was trading at $83,500 (roughly Rs. 78.6 lakh).
As Bitcoin was trading at roughly $68,800 (roughly Rs. 64.8 lakh) as of Friday, 3,030 BTC will then be worth about $208.5 million (roughly Rs. 1,965 crore), which is approximately 126 percent of the $165 million (roughly Rs. 1,554 crore) total outstanding principal. The firm held an additional 1,253 BTC outside the pledged position by the end. Given the trading value of Bitcoin on Friday, the value of this stock will be $86.2 million (roughly Rs. 812 crore).
According to the new agreement, Kraken is now allowed to calculate collateral maintenance and margin requirements based on the net position in the Bitcoin derivative. The value of positions would be calculated daily by Kraken. If the value goes below zero, it shall not be considered in the calculation process. Nakamoto noted that this agreement may work in favor of protective puts in mitigating losses in pledged Bitcoin.
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