Nakamoto Inc., the Nashville-based Bitcoin company operating a BTC treasury and Bitcoin Magazine, announced Thursday it sold approximately 600 BTC and related derivative positions for about $48 million in net proceeds to reduce outstanding debt by $45 million while authorizing a $25 million share buyback program. The company refinanced roughly 105 million USDT of principal debt to June 2027 as part of the balance sheet restructuring. The moves come as Bitcoin fell more than 21% over the last month, dropping below $60,000 last week for the first time since 2024, with the cryptocurrency trading at $63,515 and down nearly 50% from its all-time high above $126,000 set in October.
Nakamoto Sells 600 BTC and Reduces Debt by $45 Million
Nakamoto sold approximately 600 BTC and related derivative positions to generate about $48 million in net proceeds, which funded the $45 million debt paydown. Tyler Evans, Nakamoto's chief investment officer, stated that "the recent volatility in Bitcoin markets reinforces the importance of maintaining a disciplined balance sheet." Evans added that "through this refinancing, we have reduced overall debt, extended the majority of our maturity profile into 2027, and improved the overall flexibility of our debt."
Kraken Loan Refinancing Extends Maturity to 2027 with Reduced Interest Rate
Under a new loan term sheet with Kraken, the crypto exchange serving as Nakamoto's lender, 60 million USDT will mature in December 2026, while the remaining 105 million USDT has been pushed to June 2027. The revised agreement reduces the interest rate to as low as 7.75% annually, contingent on the company maintaining a collateral floor of 2,000 Bitcoin. Nakamoto stated the changes are expected to cut annual interest expense by roughly $4 million. Evans credited Kraken as "a thoughtful and supportive financing partner."
Nakamoto Authorizes $25 Million Share Buyback and Regains Nasdaq Compliance
Nakamoto authorized a $25 million share buyback program as part of Thursday's announcement. The company disclosed it received confirmation from Nasdaq on June 9 that it had regained compliance with the exchange's minimum $1 bid price requirement, a threshold it had previously fallen below before conducting a 1-for-40 stock split in late May.
Company Holds 4,467 BTC Post-Transaction as NAKA Shares Rise 9.5%
Following the transactions, Nakamoto holds approximately 4,467 Bitcoin on its balance sheet, valued at about $284 million as of this writing. Nakamoto (NAKA) shares finished the trading day up more than 9.5% at a price of $4.47, showing a nearly 39% drop over the last month and a more than 68% loss since the start of the year.
FAQ
How much Bitcoin did Nakamoto sell to reduce its debt?
Nakamoto sold approximately 600 BTC and related derivative positions, generating about $48 million in net proceeds to fund a $45 million debt paydown.
What are the new loan terms Nakamoto negotiated with Kraken?
Under the new loan term sheet with Kraken, 60 million USDT will mature in December 2026, while 105 million USDT has been extended to June 2027, with an interest rate as low as 7.75% annually contingent on maintaining a collateral floor of 2,000 Bitcoin.
How many Bitcoin does Nakamoto hold after the transaction?
Following the transactions, Nakamoto holds approximately 4,467 Bitcoin on its balance sheet, valued at about $284 million as of this writing.
