Nakamoto owes Kraken $165 million, exceeding its market value

Nakamoto owes Kraken — Bitcoin treasury firm Nakamoto is facing a significant financial liability, owing cryptocurrency exchange Kraken $165 million, a sum that exceeds the firm’s total market capitalization.

According to a report, approximately 70% of Nakamoto’s bitcoin holdings are pledged as collateral to Kraken. These bitcoins were acquired at an average price of around $118,000 per coin.

The current market price of bitcoin, which is trading below $69,000, is substantially lower than Nakamoto’s acquisition cost. This creates a precarious situation where the collateral’s value has fallen far below the loan amount.

The $165 million debt obligation surpasses Nakamoto’s entire market value, raising serious questions about the firm’s financial solvency and its ability to meet its obligations to the exchange.