Bitcoin Treasury Company Registers Almost All Shares for Resale Amid Heavy Collateral Commitments
A Bitcoin treasury company, USBC, has registered almost all of its outstanding common stock for potential resale. This represents about 92.7% of its total shares and creates a possible market overhang alongside its balance sheet.
The company's August 27 amended preliminary prospectus covers up to 359,815,000 shares held by selling stockholders. These shares already exist and can be sold or transferred at any time, but the registration does not guarantee that they will be sold.
USBC has also disclosed a loan of $18 million from Payward Interactive, secured by approximately 478 BTC worth around $77,872 as of August 24. The company models that this collateral could lose about 37.9% of its value before reaching the 130% collateral-call ratio.
The company's treasury also includes a significant portion of Bitcoin pledged for options trading, representing around 34.1% of its total holdings.