Nakamoto Pushes $165M Kraken Loan Into 2027 as Stock Sinks Below Debt

Nakamoto (NASDAQ: NAKA), the Bitcoin treasury company founded by David Bailey, has pushed all remaining principal payments on its $165 million Kraken loan into 2027, according to a November 12 SEC filing, as its market capitalization fell to roughly $104 million — nearly $61 million below the debt itself.

The company owes 165 million USDT to Payward Interactive, the operator of Kraken, which extended the financing through Nakamoto's subsidiary, Nakamoto Holdings. Shares closed Thursday at $5.79. The amendment, signed Wednesday, postpones a $60 million repayment originally due December 4, 2026 to December 4, 2027, while the remaining 105 million USDT now matures June 30, 2027. Nakamoto has no scheduled principal repayments under the facility for the remainder of 2026.

What does this change for a leveraged Bitcoin treasury? It buys time, not solvency.

What does the amendment change?

Chief Investment Officer Tyler Evans said in a company statement: "This amendment extends our runway and makes our collateral position more resilient." He added that management expects the arrangement to provide more flexibility during Bitcoin price fluctuations while it focuses on operating businesses and cryptocurrency holdings.

The company's collateral position explains the urgency. Nakamoto pledged 3,030 BTC against the loan — roughly 71% of its September holdings of 4,283 BTC. At quarter-end, when Bitcoin traded near $83,565, those coins carried a reported value of approximately $253.2 million. At Friday's price near $68,800, the same collateral is worth about $208.5 million, or 126% of outstanding principal. The cushion has thinned by roughly $45 million in six weeks.

The loan terms give Kraken two escalation paths. If collateral falls below the required maintenance threshold, Nakamoto must repay part of the debt, post additional Bitcoin, or both. A decline below the contractual liquidation threshold would trigger an event of default, allowing Kraken to sell the pledged coins.

How derivatives now count toward collateral

The amendment also changes how Kraken measures coverage. The lender can now include the net value of Nakamoto's Bitcoin derivatives positions when calculating maintenance and liquidation requirements, assessing them daily. Positions with negative combined value count as zero.

At September 30, Nakamoto held put options covering 2,000 BTC at a $55,000 strike, expiring December 25, alongside written calls on 2,150 BTC at strikes from $80,000 to $110,000. The company said protective options could offset losses in pledged Bitcoin before additional collateral is required. In practice, the mechanism did not help at quarter-end: the company reported a net derivatives liability of approximately $6.45 million, meaning the positions contributed no positive collateral value under the amended calculation.

Selling Bitcoin to stay ahead of the debt

Nakamoto has already reduced its treasury under pressure. The debt originally stood at 210 million USDT under a December 2025 financing arrangement. In June, the company cut it by 45 million USDT after selling Bitcoin and derivatives — a transaction that generated approximately $48 million in net proceeds. It sold 284 BTC during the first quarter of 2026 and roughly 600 BTC more, plus derivatives, to finance the June repayment.

The operational picture is tightening. Nakamoto held $19.4 million in cash at September 30, while operating activities consumed $36.8 million during the first nine months of 2026 — up from $15.9 million in the same period of 2025. That is a 131% increase in cash burn, against a cash balance that covers roughly six months of the current run rate.

The company's cost basis compounds the pressure: total Bitcoin acquisition cost of $506.3 million, equivalent to about $118,200 per coin against a Friday price near $68,800. The treasury's reported fair value stood at $357.9 million at quarter-end.

Nakamoto, which emerged from a restructuring of the former KindlyMD business, now spans financial services, asset management and Bitcoin media through BTC Inc. and UTXO Management. Its own filing warns that further Bitcoin price declines could reduce liquidity and affect its ability to meet obligations.

The next hard deadline is June 30, 2027, when 105 million USDT matures — but the maintenance and liquidation thresholds, assessed daily, will test the collateral stack long before that date arrives.