Nakamoto Inc. (Nasdaq: NAKA), a Nashville-based Bitcoin company, announced today a financial restructuring plan that includes a $45 million debt reduction, debt repayment and extended maturities, and an authorization to repurchase up to $25 million.
Shares of NAKA briefly rose 20% on the news, at the time of writing.
The company he retired $45 million in debt repaid by repaying a portion of its debt with Payward Interactive, Inc., doing business as Kraken. Nakamoto facilitated the return by selling approximately 600 Bitcoin and Bitcoin-related properties, which generated approximately $48 million in total revenue.
The transaction leaves Nakamoto with approximately 4,467 Bitcoin on his balance sheet.
Nakamoto’s new loan term sheet
After payment, Nakamoto entered into a new loan document under its Master Loan Agreement with Kraken. The deal covers the remaining 165 million USDT. Under the new arrangement, 60 million USDT will mature on December 4, 2026, while the remaining 105 million USDT has been extended to June 30, 2027.
Interest rates range from 8.0% to 7.75% per annum, subject to the company maintaining a deposit of 2,000 Bitcoin within a separately managed account at Bitwise Asset Management.
The company estimates that the restructuring loan will reduce annual operating costs by approximately $4 million.
“These actions also strengthen the structure of the economy and are expected to reduce funding costs, which provides additional opportunities as we continue to implement our long-term Bitcoin Treasury strategy,” said Tyler Evans, Chief Investment Officer and Director of Nakamoto. “We are grateful to Kraken for being a thoughtful and supportive financial partner throughout this process.”
Share the redemption permission
Nakamoto’s Board of Directors approved a share repurchase program of up to $25 million in the company’s common stock through December 31, 2026.
The program, designated the 2026 Repurchase Program, allows for purchases through open markets, privately negotiated agreements, block sales, and Rule 10b5-1 trading plans.
Earlier this week, on June 9, Nakamoto said he received a letter from Nasdaq Listing Qualifications confirming that the company had resumed compliance with the requirements for the $1.00 exchange, closing the matter.
Bitcoin Magazine is published by BTC Inc., a Nakamoto Inc. company. (NASDAQ: NAKA)
