Nakamoto Clears $45 Million in Debt, Approves $25 Million Share Buyback

Nakamoto Inc. said it has eliminated $45 million of debt, approved a $25 million share repurchase program and returned to compliance with Nasdaq listing requirements. The debt reduction removes a key constraint for a Bitcoin-focused business: fixed obligations alongside an asset class known for sharp price swings. With the debt overhang gone, the company gains additional balance-sheet flexibility. The board's $25 million buyback authorization indicates management views the stock as attractive at current levels. Repurchases reduce shares outstanding and can lift earnings per share. Nakamoto's restored Nasdaq compliance also improves access to institutional capital. Noncompliance can force selling by funds restricted from holding securities that do not meet listing standards. The company also runs an actively managed Bitcoin derivatives strategy through Bitwise Asset Management, aimed at improving treasury management by generating yield on Bitcoin holdings and hedging downside risk. Kraken Institutional provides custody for the Bitcoin posted as collateral. For investors, the debt elimination materially lowers risk. With $45 million in debt, the company effectively operated as a leveraged exposure to Bitcoin; removing that leverage reduces bankruptcy risk in a downturn. Completion of the full $25 million buyback would also meaningfully reduce the float. A key variable remains execution of the derivatives program. Options strategies can cap upside, futures positions introduce margin requirements, and derivatives markets carry counterparty risk. Investors may want to track performance during sharp Bitcoin drawdowns, when hedges can behave unpredictably and losses can emerge quickly.