Nakamoto, the bitcoin treasury company led by David Bailey that trades on Nasdaq as NAKA, owes crypto exchange Kraken 165 million USDT under a loan taken through its subsidiary, Nakamoto Holdings, with Payward Interactive — Kraken's operator — as the lender.

Per a November 12 SEC filing reported by crypto.news, the company signed an amended agreement with Kraken, postponing a $60 million repayment originally due in December 2026. Its shares closed Thursday at $5.79, a market capitalization of nearly $104 million — far below the outstanding debt.

The striking twist is that the lender extended the loan rather than call it in.

Under the revised terms, per crypto.news, Nakamoto will repay 60 million USDT on December 4, 2027 instead of December 4, 2026, with the remaining 105 million USDT maturing June 30, 2027 — meaning no scheduled principal repayments for the rest of 2026.

Bloomingbit reports that Nakamoto moved to extend maturities to reduce its repayment burden. Chief Investment Officer Tyler Evans said the amendment "extends our runway and makes our collateral position more resilient," giving management flexibility during bitcoin price swings.

The loan is backed by Nakamoto's bitcoin, and that collateral has lost value fast. According to Bloomingbit, 3,030 of Nakamoto's 4,283 bitcoin — about 70% — were pledged to Kraken as of late September, worth roughly $253 million then, but only about $208 million after bitcoin dropped below $69,000.

crypto.news reports that at Friday's reference price near $68,800, the pledged coins cover roughly 126% of the $165 million principal, with another 1,253 BTC unencumbered, worth about $86.2 million.

The company acquired its bitcoin at an average cost near $118,200 per coin, per crypto.news, putting its holdings deep underwater.

The amendment also changes how collateral is measured: per crypto.news, Kraken will count the net value of Nakamoto's bitcoin derivatives daily toward maintenance requirements, with negative net values treated as zero.

Nakamoto holds put options on 2,000 BTC with a $55,000 strike and December 25 expiration, but reported a net derivatives liability of about $6.45 million at quarter-end, contributing no positive collateral value.

If collateral falls below the maintenance threshold, the company must repay part of the loan or post more bitcoin; a breach of the liquidation threshold could trigger default, letting Kraken sell the pledged coins.

The company also burned $36.8 million in operating cash in nine months while holding $19.4 million in cash, per crypto.news.