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.
This post first appeared in USBC Doubles Its Bitcoin-Backed Credit Line With Kraken to $40 Million