Nakamoto Inc. (Nasdaq: NAKA), a Nashville-based Bitcoin operating company, today announced a set of capital structure initiatives that include a $45 million debt reduction, an extended term loan refinancing and a $25 million share repurchase authorization.
Shares in NAKA briefly rose 20% on the news at the time of writing.
The company retired $45 million in outstanding debt through repayment of a portion of its loan with Payward Interactive, Inc., doing business as Kraken. Nakamoto funded the repayment by selling approximately 600 Bitcoin and Bitcoin-related derivative positions, generating approximately $48 million in net proceeds.
The transaction leaves Nakamoto with approximately 4,467 Bitcoin on his balance sheet.
Nakamoto’s new loan term sheet
Following the disbursement, Nakamoto entered into a new loan term under its existing principal loan agreement with Kraken. The agreement regulates a remaining outstanding balance of USDT 165 million. Under the new structure, USDT 60 million will mature on December 4, 2026, while the remaining USDT 105 million has been extended to June 30, 2027.
The interest rate ranges from 8.0% to 7.75% per annum, subject to the company maintaining a base collateral level of 2,000 Bitcoin in a separately managed account with Bitwise Asset Management.
The company estimates that the restructured debt will reduce annual financing costs by approximately $4 million.
“These actions also strengthen our capital structure and are expected to lower funding costs, providing additional options as we continue to execute our long-term Bitcoin finance strategy,” said Tyler Evans, Chief Investment Officer and Director of Nakamoto. “We are grateful to Kraken for being a thoughtful and supportive funding partner throughout this process.”
Permission to buy back shares
Nakamoto’s board of directors approved a share repurchase program of up to $25 million of the company’s outstanding common stock through December 31, 2026.
The program, designated the 2026 Repurchase Program, permits purchases through open market transactions, privately negotiated agreements, block deals and Rule 10b5-1 trading plans.
Earlier this week, on June 9, Nakamoto said they received a letter from Nasdaq Listing Qualifications confirming that the company regained compliance with the exchange’s minimum bid price of $1.00, ending the case.
Bitcoin Magazine is published by BTC Inc, a subsidiary of Nakamoto Inc. (NASDAQ: NAKA)