Owing Kraken $165 million against a market cap of just $104 million, this Bitcoin treasury company is underwater.
On November 12, David Bailey’s Nakamoto signed an amendment with Kraken: repayment of $60 million USDT is deferred until December 4, 2027, and not a cent of principal is due this year.
The debt is worth more than the entire company. Of its 4,283 BTC, 3,030 are pledged to Kraken and are worth just $208 million at current prices—126% of the principal. The average purchase price was $118,200, leaving an unrealized loss of 42%.
The protective put options expire on December 25, while the loan runs until 2027—the hedge goes first, but the debt remains.
Here’s the bottom line: 3,030 BTC cover $165 million; $BTC is watching $54,455. If it can’t hold, the collateral won’t cover the principal.
#BlackAndWhiteAccounting
On November 12, David Bailey’s Nakamoto signed an amendment with Kraken: repayment of $60 million USDT is deferred until December 4, 2027, and not a cent of principal is due this year.
The debt is worth more than the entire company. Of its 4,283 BTC, 3,030 are pledged to Kraken and are worth just $208 million at current prices—126% of the principal. The average purchase price was $118,200, leaving an unrealized loss of 42%.
The protective put options expire on December 25, while the loan runs until 2027—the hedge goes first, but the debt remains.
Here’s the bottom line: 3,030 BTC cover $165 million; $BTC is watching $54,455. If it can’t hold, the collateral won’t cover the principal.
#BlackAndWhiteAccounting
