USBC Registration Creates Market Overhang Amid Bitcoin-Backed Loan Risk
USBC has filed an amended preliminary prospectus to register up to 359.815 million shares held by selling stockholders for potential resale, which is approximately 92.7% of its outstanding common stock.
The registration statement creates a potential market overhang alongside USBC's balance sheet, which relies heavily on Bitcoin as collateral. The company would receive no proceeds from any sale or other disposition by the holders, and the share count and control position remain unchanged until transactions occur.
The majority of the covered shares belong to Goldeneye 1995 LLC, which holds approximately 357.8 million shares issued in exchange for 1,000 BTC and $15 million in cash last August. Goldeneye also retains significant voting power, holding about 92.2% of USBC's voting power when it approved a proposed reverse stock split by written consent in June.
Separately, USBC's loan disclosure shows that the company has $18 million outstanding under its credit facility with Payward Interactive, which is secured by approximately 478 BTC and carries an 8.5% annual interest rate. The company modeled that pledged Bitcoin collateral could lose about 37.9% of its value before coverage reached the 130% collateral-call ratio, assuming no repayment or added collateral.