Key Takeaways
Nakamoto Inc. sold 600 BTC to reduce debt by $45 million and strengthen its balance sheet.
New measures pushed most loan repayments into 2027 and could save the company $4 million annually in financing costs.
Despite recent stock struggles, Nakamoto still holds 4,467 BTC and approved a $25 million share buyback.
Nakamoto Reshapes Finances
Nakamoto Inc. (NASDAQ: NAKA), a company focused on Bitcoin, announced several financial changes to make its business stronger and more flexible.
The company reduced its debt by about $45 million. To do this, it sold around 600 bitcoin and some bitcoin-related financial positions. These sales brought in about $48 million in cash.
Even after selling part of its holdings, Nakamoto still owns about 4,467 BTC.
Nakamoto used the money to repay part of a loan from Payward Interactive, which operates as Kraken. After making the payment, the company signed new loan terms with Kraken.
Under the new agreement, Nakamoto still owes 165 million USDT. Of that amount, 60 million USDT must be paid by December 4, 2026. The remaining 105 million USDT does not need to be repaid until June 30, 2027.
The refinancing also gives Nakamoto slightly lower borrowing costs. The interest rate can fall from 8.0% to 7.75% if the company keeps at least 2,000 bitcoin as collateral in a separately managed account with Bitwise Asset Management.
Nakamoto said these changes are expected to reduce yearly financing costs by about $4 million.
Company executives said the moves are meant to make the business more stable during periods of bitcoin price swings while continuing to focus on its long-term bitcoin strategy.
“The recent volatility in bitcoin markets reinforces the importance of maintaining a disciplined balance sheet,” said Tyler Evans, Chief Investment Officer and Director of Nakamoto.
He added, “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.”
He continued:
“These actions also strengthen our capital structure and are expected to lower financing costs, providing additional optionality as we continue executing our long-term bitcoin treasury strategy. We are grateful to Kraken for being a thoughtful and supportive financing partner throughout this process.”
Along with the debt changes, Nakamoto’s board approved a share buyback program worth up to $25 million. This program allows the company to buy back its own shares through open market purchases, private deals, and other approved methods. The authorization will remain active until December 31, 2026.
However, Nakamoto said it is not required to buy a set number of shares and may change or stop the program at any time. The company said the buyback reflects confidence in its long-term value and gives it more flexibility in managing capital.
The latest development comes shortly after the company announced a 1-for-40 reverse stock split to avoid delisting from Nasdaq. Its share price had been on a prolonged decline, trading below $1 for 30 consecutive days.
The reverse split did little to halt the downturn. Despite the measure, the stock continued to slide, eventually reaching record lows of around $4 afterwards.
Even so, Nakamoto later announced that it had regained compliance with Nasdaq’s minimum $1 bid price requirement.
Shareholders are hopeful that lower debt levels, extended repayment schedules, reduced financing costs, and the company’s substantial bitcoin holdings will strengthen its financial position and support its long-term bitcoin-focused strategy.
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