USBC increased a Bitcoin-backed loan to $18 million in late July. That created a price-dependent risk: the company could have to add collateral or repay debt within 24 hours. Using the filing’s July 31 inputs, the disclosed 130% call ratio equates to an illustrative Bitcoin price near $48,852.
The company is developing a tokenized-deposit offering. In its Aug. 7 Form 10-Q, it said a fourth draw of $3 million on July 28 raised the balance under its Payward Interactive facility from $15 million. USBC had pledged 479 Bitcoin worth about $30.1 million as of July 31. The filing reported a 59.8% loan-to-value ratio.
Payward Interactive, a Kraken-affiliated entity, is the lender. Affiliate Payward Financial, branded Kraken Financial, holds the Bitcoin as custodian for the lender.
The exposure has grown since June, when USBC disclosed a $15 million balance secured by 336 Bitcoin. The August filing therefore updates both sides of the risk: more debt and more encumbered Bitcoin.
The call and liquidation lines
USBC’s facility requires an initial margin ratio of 150%. At or below the disclosed 130% call ratio, Payward Interactive may issue a collateral-call notice. The notice can require additional collateral or partial repayment within 24 hours. The ratio must then return to 150%.
Using $18 million of principal and 479 Bitcoin, with no change in accrued fees, debt or collateral, 130% coverage equals $23.4 million. That total is about 22.3% below USBC’s approximate $30.1 million July 31 collateral value. It equates to an illustrative $48,851.77 per Bitcoin.
The price is not a permanent contractual trigger. The master loan agreement uses an applicable spot reference. The loan balance can include accrued and unpaid fees. Repayments or additional collateral would also move the level.
The 120% liquidation threshold
At the disclosed 120% ratio, the same principal-only calculation gives $21.6 million of collateral. That equals an illustrative $45,093.95 per Bitcoin. At that ratio, the agreement gives Payward sole discretion to liquidate immediately without notice. It can do so even if it has not issued a call or the 24-hour response period remains open.
