"Increased Redemption Uncertainty During USDT Bank Run"... Warning from Bitcoin DAT Company in SEC Filing

Virtual assets (digital assets) are entering corporate financial statements. There are cases where stablecoins are classified as cash equivalents, company funds are managed in DeFi (decentralized finance), and stablecoins are borrowed against Bitcoin as collateral. examines how companies are utilizing digital assets in actual finance, accounting, and fund management through public disclosures submitted to the U.S. Securities and Exchange Commission (SEC).

Part of the annual report (Form 10-K) submitted by Nakamoto to the SEC for 2025. Source=SEC

The SEC filing includes a warning that if a 'bank run' occurs with the stablecoin USDT (Tether), it could pose issues not only for the value of the debts that BTC (Bitcoin) companies must repay but also for their redemption capabilities.

On the 6th (Korean time), confirmed that Nakamoto, a Bitcoin Digital Asset Finance (DAT) company, submitted its 2025 annual report (Form 10-K) to the SEC, revealing that its subsidiary Nakamoto Holdings entered into a loan agreement with Kraken in December 2025.

The loan was paid in Tether rather than dollars.

Nakamoto borrowed 93 million USDT from Kraken on December 4, 2025. Subsequently, on December 9 of the same month, it increased the total loan amount to 210 million USDT, including the existing loan.

The loan interest rate was set at 8% per annum, and both the principal and interest had to be repaid in Tether. The contract's maturity was set for December 4, 2026.

Notably, the collateral was Bitcoin.

By the end of 2025, Nakamoto had pledged 3,717 Bitcoins as collateral to Kraken. To meet the collateral maintenance requirements due to a decline in Bitcoin prices, it additionally pledged 688 BTC on February 5, 2026.

As a result, as of March 23, the amount of Bitcoin locked in the Kraken collateral account increased to approximately 4,405 BTC. At that time, only about 653 Bitcoins held by Nakamoto were not pledged as collateral.

A noteworthy point is that Nakamoto explicitly identified the price instability of Tether as a separate risk factor.

Part of the annual report (Form 10-K) submitted by Nakamoto to the SEC for 2025. Source=SEC

In the annual report, the company stated, "If Tether experiences significant redemption pressure or a bank run, it may trade below its target price, resulting in uncertainty regarding the company's debts."

It further warned that such a situation could have a significant adverse impact on the company's financial condition and its ability to fulfill its obligations under the loan agreement.

USDT is a dollar stablecoin designed to maintain a value of 1 USDT to 1 dollar.

However, Nakamoto's loan is denominated in Tether for both the principal and interest. If the price of Tether deviates from 1 dollar, the dollar-equivalent value of the debts the company must repay will also change.

The issue is not limited to simple price fluctuations.

Nakamoto indicated that if trust in Tether declines, liquidity is insufficient, or regulatory measures are taken, the value of the debts could become uncertain, leading to potential losses.

Additionally, if the use of Tether is restricted or if there are issues with its normal functioning, it may face difficulties in repaying the loan or settling existing debts with new loans.

Nakamoto reflected these price fluctuation risks in its actual accounting.

The company determined that the 210 million USDT loan from Kraken includes an 'embedded derivative' that varies in value based on the price difference between Tether and dollars.

The warning issued by the company is that if there is significant redemption pressure on Tether, leading to price and liquidity instability, these issues could affect not only debt valuation but also actual repayments.

The decline in Bitcoin prices is another risk factor.

The loan agreement includes a condition that a certain ratio must be maintained between the collateral value of Bitcoin and the loan amount.

If Bitcoin prices fall and the collateral value drops below the threshold, Kraken may require Nakamoto to pledge additional Bitcoins or repay part of the loan.

If Nakamoto fails to comply, Kraken may deem it in default and dispose of some or all of the pledged Bitcoins without prior notice.

Ultimately, this loan structure means that the prices and stability of both Bitcoin and Tether simultaneously impact the company's finances.

If the BTC price drops, the risk of requiring additional collateral or forced liquidation increases. If Tether deviates from 1 dollar, the dollar-equivalent value of the debts changes, and in the event of severe market instability, repayments may also be disrupted.

Nakamoto subsequently adjusted the loan structure with Kraken in June.

The company utilized funds obtained by selling approximately 600 BTC and Bitcoin-related derivatives to repay 45 million USDT. As a result, the loan principal was reduced from 210 million USDT to 165 million USDT.

According to the revised contract, 60 million USDT is due on December 4, 2026, and the remaining 105 million USDT is due on June 30, 2027.

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