USDBitcoin Treasury Firms Sell BTC to Manage Debt
Fold and Nakamoto reduce obligations as market volatility pressures reserve strategies
TL;DR
- Fold and Nakamoto sold Bitcoin holdings to reduce debt and improve balance-sheet flexibility.
- Nakamoto also restructured remaining loan obligations while keeping a large BTC reserve.
- Other Bitcoin treasury firms have faced pressure tied to dividends, buybacks, investor demands, and weaker BTC prices.
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Fold and Nakamoto Inc. sold portions of their Bitcoin holdings to address debt obligations, marking a fresh sign that Bitcoin treasury firms are balancing reserve strategies against financing costs, maturity schedules, and market volatility.
Fold, a Bitcoin treasury firm, sold roughly $45 million worth of BTC at an average price of about $71,000 per Bitcoin. The company used $20 million from the sale to fully repay secured debt backed by Bitcoin and kept the remaining $25 million as unrestricted cash, presenting the transaction as a balance-sheet restructuring rather than an exit from its Bitcoin strategy.
Will Reeves, Chairman and CEO of Fold, said the company reduced financing pressure while keeping its roadmap intact. “We have reduced financing risk, strengthened our balance sheet, and ensured that short-term market volatility cannot stand in the way of executing our roadmap,” Reeves said.
Fold still holds a Bitcoin treasury after the sale. BitcoinTreasuries.NET listed the company’s remaining holdings at 192 BTC, valued at around $12.1 million. The company said the remaining cash gives it more operational flexibility without raising dilutive capital and leaves it able to sell additional holdings if attractive investment opportunities appear.
Fold had borrowed against its BTC instead of selling it earlier, a structure that allowed the company to preserve upside exposure while funding operations, product development, and expansion. That approach also created interest costs, repayment obligations, and collateral risk when Bitcoin became volatile.
The sale removed interest payments and financing risk tied to Bitcoin price fluctuations while freeing up capital for Fold’s Bitcoin Credit Card and business services. Fold’s BTC monetization appeared to occur before Bitcoin moved toward the $61,000 range, based on the company’s disclosed average sale price.
COIN360 data showed Bitcoin trading at $62,742.09, up 1.92% over the previous day but down more than 22% over the prior month. The pricing backdrop supported the company’s framing of the sale as a risk-management move during volatile market conditions.
A related DeFi stress event was also noted on May 9, when DeepBook’s USDC margin pool became undercollateralized. The incident created strain in leveraged trading infrastructure and resulted in bad debt of almost $239,700.
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Nakamoto restructures debt after BTC sale
Nakamoto Inc., which trades on Nasdaq under NAKA, also sold Bitcoin to manage obligations. The company announced on June 11, 2026, that it sold roughly 600 Bitcoin and related derivative positions to address a $45 million Kraken loan.
Nakamoto generated $48 million in net proceeds from the sale and used the funds to pay down debt owed to Payward Interactive, Kraken’s parent entity. The remaining $165 million USDT loan was restructured into two tranches: a $60 million loan due December 4, 2026, and a $105 million loan extended to June 30, 2027.
Nakamoto now holds about 4,467 BTC, down from 5,342 BTC at the end of 2025. The latest sale followed another reduction in March, when the company sold 284 BTC for $20 million to cover working capital and interest costs tied to the same Kraken loan.
Tyler Evans, Nakamoto’s chief investment officer, said the refinancing improved the company’s debt position. “Through this refinancing, we have reduced overall debt, extended the majority of our maturity profile into 2027, and improved the overall flexibility of our debt,” Evans said.
Nakamoto’s restructured loan carries an interest rate between 7.75% and 8.0%, but that rate depends on the company maintaining a minimum 2,000 BTC balance in a separately managed Bitwise account. Nakamoto said the debt paydown and rate reduction should generate about $4 million in annual interest savings.
The company’s remaining maturity schedule leaves a near-term focus on the December 4, 2026, tranche. If BTC remains under pressure, investors are likely to watch whether Nakamoto sells more BTC or pledges additional collateral from its remaining holdings. The lower interest-rate condition also limits flexibility because the Bitwise-managed account must keep the minimum BTC balance.
Nakamoto’s board authorized a share repurchase program of up to $25 million through December 31, 2026. The company also disclosed that it returned to Nasdaq compliance on June 9, 2026, after the exchange confirmed NAKA met the minimum $1 bid-price requirement.
That compliance followed a 1-for-40 reverse stock split in May. BitcoinTreasuries.NET’s analysis said the split reduced roughly 696 million shares to about 17 million shares.
Nakamoto’s market capitalization was reported at around $1.9 billion, while its Bitcoin treasury was valued at approximately $280 million at current prices. The figures show the distance between the company’s public-market valuation and the stated value of its Bitcoin holdings.
Other treasury firms face pressure around BTC holdings
Several other Bitcoin treasury firms have also sold or faced pressure to sell BTC as weaker market conditions tested corporate reserve strategies. BTC was described as trading at roughly 50% of its October 2025 highs, increasing pressure on companies that built treasury or debt structures when Bitcoin prices were much stronger.
Strategy, which trades on Nasdaq under MSTR and was described as the largest corporate Bitcoin holder, sold 32 BTC between May 26 and May 31 for $2.5 million. The sale was said to be its second-ever BTC sale and was linked to funding preferred stock dividends.
London-listed Satsuma Technology was described as facing investor pressure from Pantera Capital to liquidate its remaining BTC stack after its stock fell more than 99% from peak levels. Empery Digital’s investors also reportedly forced Bitcoin sales to fund share buybacks.
FAQ
Why did Fold sell Bitcoin?
Fold sold BTC to repay secured debt and increase unrestricted cash.
How much Bitcoin did Nakamoto sell?
Nakamoto sold roughly 600 Bitcoin and related derivative positions.
What loan did Nakamoto address?
Nakamoto addressed a $45 million Kraken loan owed to Payward Interactive.
Did Fold exit its Bitcoin strategy?
No. Fold still held 192 BTC after the sale.
This article has been refined and enhanced by ChatGPT.
