Bitcoin firm Nakamoto owes Kraken $165 million, more than its entire market value
Bitcoin firm Nakamoto owes crypto exchange Kraken $165 million USDT, exceeding its entire market value of approximately $104 million, according to an 8-K filing.
Nakamoto's main business is holding bitcoin, and it now owes crypto exchange Kraken 165 million USDT, a dollar-pegged stablecoin issued by Tether. The debt exceeds the company's stock market value of about $104 million, with shares closing Thursday at $5.79.
Under an amendment signed Wednesday and disclosed Thursday, the 60 million USDT due Dec. 4 now matures Dec. 4, 2027. The remaining 105 million USDT is still due June 30, 2027, leaving Nakamoto with no repayments required this year.
Collateral Protection
Kraken has agreed to count the net value of Nakamoto's bitcoin derivatives positions toward the loan's collateral requirements, including put options that pay off if BTC's price falls. This provides some protection against declining prices, though the protective put options expire before the debt comes due.
This amendment extends our runway and makes our collateral position more resilient.
Thin Cushion
Nakamoto's quarterly report shows 3,030 of its 4,283 bitcoin were pledged to Kraken at the end of September. At Friday's price under $69,000, those coins are worth roughly $208 million, about 126% of what Nakamoto owes.
If that value falls below a maintenance level, Nakamoto must repay part of the loan or pledge more bitcoin. The company has about 1,253 unpledged bitcoin left, worth roughly $86 million at current prices.
At quarter-end, Nakamoto had sold call options on 2,150 bitcoin at strikes between $80,000 and $110,000, and bought put options on 2,000 bitcoin at $55,000 that expire Dec. 25. The derivatives position was worth minus $6 million at quarter-end.
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