Bitcoin treasury firm Nakamoto is facing a precarious financial position as its debt obligations now dwarf its market value amid the ongoing crypto downturn.
The publicly traded company, formed in 2025 and built by David Bailey, co-founder of BTC Inc., owes Kraken $165 million in USDT secured by its Bitcoin holdings. As of November 14, 2026, Nakamoto's market capitalization stands at approximately $92 million—$73 million less than its outstanding debt to the exchange.
Nakamoto holds 4,283 BTC after selling 184 bitcoin in the third quarter. Of this total, 3,030 BTC have been pledged as collateral, leaving the company with only 1,253 BTC available to add as collateral if Bitcoin prices decline further.
Loan Restructuring Extends Timeline
The company originally received a $210 million USDT loan from Kraken on December 6, 2025, with an 8% annual interest rate and an initial maturity date of December 4, 2026. Nakamoto has since amended the agreement to spread repayment into 2027, with 105 million USDT maturing on June 30, 2027, and 60 million USDT maturing on December 4, 2027.
Tyler Evans, Chief Investment Officer of Nakamoto, stated that the amendment "extends our runway and makes our collateral position more resilient" while providing flexibility to manage through Bitcoin price volatility.
Diversification Efforts Beyond Bitcoin
To address risks tied solely to Bitcoin holdings, Nakamoto announced Intelligence 2027, its first event focused on artificial intelligence rather than traditional cryptocurrency themes. The company aims to build operating businesses that generate revenue independent of Bitcoin performance.
Company leadership emphasized their focus on extending debt maturities and building sustainable revenue streams to drive long-term shareholder value through market cycles.
