- USBC, Inc. signed a Second Addendum to its Master Loan Agreement with Payward Interactive, Kraken’s lending affiliate, raising its total credit commitment from $25 million to $40 million
- As of the addendum’s effective date, $21 million was already outstanding under the facility, leaving $19 million in remaining availability subject to collateral and borrowing conditions
- Borrowings remain secured by bitcoin held in custody with Payward Financial, and a companion amendment now lets that same bitcoin collateral also secure certain digital asset derivatives positions
USBC, Inc., a Nevada corporation listed on the NYSE under the ticker USBC, disclosed in an 8-K filed October 14, 2026 that it had substantially expanded a bitcoin-backed credit facility with Payward Interactive, the lending arm of crypto exchange Kraken. The Second Addendum to the companies’ Master Loan Agreement, originally dated March 18, 2026, replaces the prior addendum in full and lifts USBC’s aggregate borrowing commitment from $25 million to $40 million, a $15 million increase.
The filing discloses that as of the addendum’s effective date, USBC already had $21 million in outstanding principal drawn against the facility, leaving $19 million in remaining availability, though any further draws remain subject to standard borrowing conditions and collateral maintenance requirements. Existing outstanding borrowings continue under their original terms even as the overall facility size expands, meaning the increase primarily opens up additional headroom rather than restructuring what USBC has already borrowed.
All borrowings under the facility are secured by bitcoin that USBC holds in custody with Payward Financial, an affiliate of Kraken’s lending unit, a structure increasingly common among companies that want to access cash or working capital without selling their underlying bitcoin holdings. The arrangement includes margin requirements and gives the lender liquidation rights if the value of the posted bitcoin collateral falls short of what is required to support the outstanding loan balance.
A separate Account Control Agreement amendment, also dated October 12, 2026, broadens how that same bitcoin collateral can be used. Under the new cross-collateralization terms, bitcoin securing the loan facility may also back certain digital asset derivatives transactions, and collateral posted for those derivatives can in turn help secure the loan facility’s obligations, giving USBC more flexibility in how it allocates a single pool of pledged bitcoin across different types of exposure. The filing does not disclose the interest rate attached to the facility, specific maturity dates, or the identity of the derivatives counterparty involved in the cross-collateralization arrangement.
Separately, the same 8-K filed with the SEC disclosed that USBC’s board has set December 17, 2026 as the date for its 2026 virtual annual meeting, with October 26, 2026 set as the record date for shareholders entitled to vote, and October 23, 2026 as the deadline for stockholder proposals and director nominations ahead of that meeting.
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