Nakamoto Sold 600 BTC to Cut Debt but Faces $60M Dec Deadline

Woofun AI reports that Nakamoto is navigating a tight liquidity squeeze as it approaches a critical $60 million USDT obligation due on Dec. 4.

The firm's current liquidity position reveals a precarious balance between free reserves and encumbered assets. At quarter-end, Nakamoto held just 662 unencumbered BTC, representing approximately $38.7 million in free digital reserves. When combined with cash holdings, total unencumbered liquidity stood at $57.8 million, a figure that narrowly trails the upcoming debt maturity. This limited cushion underscores a structural reliance on pledged collateral to bridge the gap, as the filing indicates that locked tokens can be liquidated at maturity to extinguish the debt.

In June, Nakamoto executed a strategic reduction of its core holdings to alleviate pressure on the facility. The company offloaded about 600 BTC for 35.6 million USDT and unwound select derivative hedges, generating roughly $48 million in aggregate net proceeds. From these funds, 45 million USDT was directed toward paying down the facility, successfully cutting the total balance from 210 million USDT to 165 million USDT.

Additionally, the firm extended 105 million USDT of the principal into mid-2027, restructuring the timeline for the remaining debt.

Woofun AI data shows that the primary vulnerability between now and December remains the integrity of the collateral structure. Under the credit agreement, the annual loan fee stands at 7.75% provided Nakamoto maintains at least 2,000 BTC in a designated account; this rate rises to 8% if balances drop below that mark. Crucially, the 2,000 BTC marker serves strictly as a pricing tier rather than a margin trigger. Nakamoto did not disclose the facility's specific maintenance or liquidation thresholds, leaving the exact risk parameters opaque. A drop below the maintenance line would force the firm to post additional collateral or pay down principal, while breaching the liquidation trigger would constitute an event of default and allow Kraken to liquidate the pledged Bitcoin.

Headline results offer limited insight into the impending maturity, as the company posted a second-quarter net loss of $133 million. This loss was driven primarily by a $105.2 million non-cash goodwill impairment and $48.7 million in mark-to-market losses on its digital asset portfolio. Despite these charges, the firm's adjusted operating income came in at $7.3 million, heavily supported by $10.4 million in derivative revenue. David Bailey, Chairman and Chief Executive Officer of Nakamoto, said: "While our GAAP results reflect significant non-cash charges from goodwill impairment and the decline in Bitcoin's price, this quarter we delivered the first positive adjusted operating income since Nakamoto became a Bitcoin operating company."

The December maturity therefore leaves Nakamoto dependent on a combination of cash, unencumbered assets and pledged Bitcoin that can be sold against the loan. With most of its BTC still committed as collateral and the facility's maintenance and liquidation thresholds undisclosed, Bitcoin's price will remain a key variable before the Dec. 4 payment comes due.