Key Highlights
- Nakamoto reduced its outstanding debt by approximately $45 million through the sale of around 600 Bitcoin and related derivatives, generating about $48 million in net proceeds.
- The company refinanced its remaining 165 million USDT loan with Kraken, extending 105 million USDT of the debt maturity to June 2027.
- Under the new loan terms, Nakamoto can reduce its interest rate to 7.75% from 8.0% if it maintains at least 2,000 Bitcoin as collateral.
Nakamoto Inc. (Nasdaq: NAKA), a Bitcoin-focused operating company, today announced a set of strategic financial moves aimed at supporting its balance sheet, reducing leverage, and signaling confidence in its long-term prospects.
According to the official announcement, the initiatives include a $45 million debt reduction funded by Bitcoin sales, a refinancing of its remaining debt, a new $25 million share repurchase program, and confirmation that it has regained Nasdaq compliance.
The company reduced its outstanding debt by approximately $45 million through the monetization of a portion of its Bitcoin holdings and related derivative positions. The repayment was executed by selling roughly 600 Bitcoin, which generated approximately $48 million in net proceeds.
Following the move, David Bailey, CEO of Nakamoto Holdings, posted on X, “Today we strengthened Nakamoto’s balance sheet by reducing debt by $45 million, extending maturities into 2027, lowering financing costs, and maintaining a treasury of 4,468 BTC.”
Nakamoto enters a new loan term sheet
Following the partial repayment, Nakamoto entered into a new loan term sheet under its Master Loan Agreement with Payward Interactive, Inc., operating as Kraken. The agreement covers the remaining 165 million USDT principal balance. Of this, 60 million USDT will mature on December 4, 2026, while the bulk, 105 million USDT, has been extended to June 30, 2027.
The new terms offer improved flexibility, including the ability to lower the interest rate to 7.75% per annum from 8.0%, provided the company maintains a baseline collateral level of 2,000 Bitcoin in its Bitwise-managed trading wallet.
Nakamoto expects the debt reduction and refinancing to decrease annual financing costs by approximately $4 million on an annualized basis.
What the repurchase program brings
Nakamoto’s Board of Directors authorized a share repurchase program of up to $25 million. The 2026 Repurchase Program allows the company to buy back its common stock through open market purchases, privately negotiated transactions, block trades, or other lawful methods, potentially including Rule 10b5-1 trading plans.
The program runs through December 31, 2026, and provides management with flexibility to deploy capital opportunistically based on market conditions, share prices, liquidity, and strategic needs.
Nakamoto announced it has regained compliance with Nasdaq Listing Rule requirements, specifically the minimum $1 bid price rule. On June 9, 2026, the company received formal confirmation from Nasdaq Listing Qualifications, closing the matter.
Full details on the debt transactions will be disclosed in a forthcoming Current Report on Form 8-K filed with the Securities and Exchange Commission (SEC).
Q1 loss reflects Bitcoin volatility
Nakamoto Inc. posted a net loss of $238.8 million for the first quarter of 2026, for the period ending March 31, 2026. The company also recorded a $107.7 million loss linked to its pre-acquisition call option strategy.
According to the earnings report, weakening cryptocurrency market conditions played a major role. Bitcoin’s price dropped significantly during the quarter, sliding from $87,519 at the end of December 2025 to $68,220 by March 31, 2026. This decline triggered a $102.5 million mark-to-market loss on the company’s Bitcoin holdings.
Companies are selling Bitcoin to clear loans
Several companies are using Bitcoin holdings to generate funds for the repayment of their outstanding loans. In a similar move, Fold Holdings, a Nasdaq-listed company, sold approximately 634 Bitcoin at an average price of $71,000 per BTC, generating around $45 million in proceeds. The sale, announced yesterday, was used to fully repay its $20 million Bitcoin-collateralized loan, eliminating all secured crypto debt and strengthening the balance sheet.
The remaining $25 million in unrestricted cash will support expansion initiatives, including scaling its Bitcoin Rewards Credit Card, Bitcoin Gift Cards, and enterprise services. The company said that by removing ongoing interest payments, Fold improved monthly cash flow and gained greater financial flexibility for future product launches and long-term growth.
As Bitcoin continues to play a central role in corporate treasuries and investment theses, Nakamoto’s moves position it for sustained growth and resilience. Investors will be watching closely to see how the company leverages its strengthened financial position in the evolving digital asset landscape.
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