Bitcoin treasury Nakamoto Holdings has more than refinanced $100 million in crypto-backed debt while authorizing a $25 million buy back shares. This is because the company is trading at a steep discount to the value of its Bitcoin holdings.
In a June 11 update, the company said it was approximately sold 600 Bitcoin and related derivatives for approx $48 million. Nakamoto used approx $45 million of the proceeds to repay debt associated with the Kraken credit facility.
The move comes as investors are increasingly scrutinizing leveraged Bitcoin treasury companies following recent market volatility and concerns around foreclosures.
Despite the partial BTC sale, Nakamoto said it is still valid 4,467 BTC worth approximately $280 million at current prices.
Nakamoto Expands Kraken Facility Until 2027
The company also refinanced and expanded approx $105 million of the remaining debt obligations until 2027.
According to the announcement, the refinancing reduces financing costs, improves collateral flexibility and is expected to reduce annual interest charges by approximately $4 million.
Kraken participated in the refinancing together with BitGo and Bitwise, who now oversee the custody agreements associated with the facility.
Nakamoto described the restructuring as part of a broader effort to strengthen the balance sheet while maintaining long-term exposure to Bitcoin.
The state discount underlines investors’ skepticism
The refinancing announcement comes as Nakamoto trades at a deep discount to the value of his Bitcoin treasury.
Data from BitcoinTreasuries.net shows that of the company mNAV multiple has dropped to around 0.33X. This implies approximately Nakamoto’s market value 67% below the estimated net asset value of its BTC holdings.
The company currently has almost $280 million value of Bitcoin while maintaining a market capitalization of approx $76 millionaccording to the data.
The discount suggests that investors remain cautious about leverage, funding risks and the long-term sustainability of Bitcoin treasury strategies during periods of volatility.
Buybacks indicate confidence in the treasury strategy
In addition to the refinancing, Nakamoto’s board authorized a share buyback program of up to $25 million.
This move could be a signal that management believes the company’s equity is undervalued relative to the size of its Bitcoin treasury.
The announcement also comes hot on the heels of broader market discussions about whether Bitcoin treasury firms could be under pressure to liquidate their holdings during prolonged recessions.
Rather than abandoning his strategy, Nakamoto is repositioning his balance sheet while retaining most of his BTC reserves.
Final summary
- Nakamoto refinanced more than $100 million in Kraken-backed debt, while leaving 4,467 BTC on its balance sheet.
- The company also approved a $25 million buyback as its shares traded well below the estimated value of its Bitcoin holdings.