Nakamoto Holdings Faces Mounting Pressure as Bitcoin Decline Triggers Collateral Calls

Source: CryptoNewsNet Original Title: Nakamoto Holdings posts collateral twice as falling Bitcoin price strains debt Original Link:

Overview

Nakamoto Holdings (NAKA), formerly known as KindlyMD, is experiencing significant financial strain due to the recent decline in Bitcoin prices. The company has been forced to post collateral to its Bitcoin-backed debt twice in recent days, highlighting the risks of leveraging at market peaks.

Financial Pressure and Stock Performance

The company’s challenges are multifaceted. Beyond the collateral requirements, Nakamoto Holdings’ stock has already been weakened by the postponement of its Q3 report, which is expected to include a substantial $59M loss from its acquisition. Currently, NAKA shares are trading near all-time lows of $0.55, down dramatically from $25 in May.

As one of the top 20 Bitcoin treasury companies, Nakamoto Holdings operates as a ‘playbook’ company, using various financial instruments to build its treasury. However, this complex structure has exposed the company to significant debt-related vulnerabilities.

Treasury Movements and Strategy Clarification

In the past week, Nakamoto was the only Bitcoin data and analytics tracker (DAT) company to remove Bitcoin from its treasury. The company’s Bitcoin reserves had peaked at 5,764 BTC, with most acquired in a single tranche in August.

The company moved 367 BTC from its treasury, but CEO David Bailey clarified that these coins were not sold. Instead, Nakamoto invested the Bitcoin across several international treasury companies as part of a strategy to monetize its balance sheet. However, this move sparked community concerns, as the company no longer directly controls these coins and instead holds shares in other DAT companies, which may not provide exact Bitcoin exposure.

Debt Collateral Crisis

During the more optimistic months of 2025, Nakamoto Holdings pursued ambitious plans to purchase up to $1 billion in Bitcoin, with funding partly coming from an agreement with Antalpha for custom financing solutions.

The company structured a $250 million loan from Antalpha with Bitcoin collateral, based on Bitcoin prices exceeding $124,000. However, as prices declined, on-chain data revealed that the company posted additional collateral twice to avoid liquidation, with the most recent posting on November 21.

The company posted approximately 1,000 BTC to Cobo Custody as collateral, though it retains the potential to recover these coins. The collateral was posted from a smaller wallet holding around 770 BTC.

Market Implications

The collateral postings occurred as Bitcoin briefly dipped to $82,000, creating significant margin pressure. The company’s mNAV metric has fallen to 0.439, below the critical 1.0 threshold, preventing the company from using its stock to acquire additional Bitcoin.

These developments underscore the inherent risks that leveraged Bitcoin acquisition strategies face during market downturns. Nakamoto’s situation demonstrates how playbook companies can become vulnerable to price volatility when using complex debt structures. The company’s current market capitalization is now lower than its Antalpha debt facility, signaling deep imbalances in its execution of a Bitcoin treasury strategy.