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Nakamoto Inc. (Nasdaq: NAKA), a Bitcoin operating firm based in Nashville, has declared a series of capital structure initiatives, encompassing a $45 million debt reduction, a loan refinancing with extended repayment terms, and an authorization for a $25 million share repurchase program.
N shares saw a temporary surge of 20% following the announcement, at the present time.
The firm settled $45 million in outstanding obligations by paying down a portion of its loan with Kraken, officially known as Payward Interactive, Inc. Nakamoto financed this repayment by divesting approximately 600 Bitcoin and related derivative positions, which yielded roughly $48 million in net proceeds.
This maneuver leaves Nakamoto with an estimated 4,467 Bitcoin holdings on its balance sheet.
Nakamoto’s updated loan terms
Subsequent to the debt reduction, Nakamoto entered into a new loan term sheet under its existing Master Loan Agreement with Kraken. This agreement pertains to a remaining outstanding balance of 165 million USDT. Under the revised terms, 60 million USDT is due on December 4, 2026, while the remaining 105 million USDT repayment period has been extended to June 30, 2027.
The annual interest rate is adjusted from 8.0% to 7.75%, conditional upon the company maintaining a minimum collateral level of 2,000 Bitcoin in a separate account managed by Bitwise Asset Management.
The company projects that the restructured debt will lead to an approximate $4 million reduction in annual financing expenses.
“These measures also bolster our capital structure and are anticipated to decrease financing expenses, offering greater flexibility as we continue to advance our long-term Bitcoin treasury strategy,” stated Tyler Evans, Chief Investment Officer and Director at Nakamoto. “We value Kraken’s partnership and their supportive approach to financing throughout this endeavor.”
Share buyback authorization
The Board of Directors at Nakamoto has greenlit a share repurchase initiative, authorizing the acquisition of up to $25 million worth of the company’s issued common stock until December 31, 2026.
This program, named the 2026 Repurchase Program, allows for acquisitions through various channels including open market transactions, private negotiations, block trades, and Rule 10b5-1 trading plans.
Earlier this week, on June 9, Nakamoto announced that it had received confirmation from Nasdaq Listing Qualifications regarding its regained compliance with the exchange’s minimum bid price requirement of $1.00, thereby resolving the issue.
Bitcoin Magazine is a publication of BTC Inc, a subsidiary of Nakamoto Inc. (NASDAQ: NAKA)
Source: : bitcoinmagazine.com