Kraken holds the instant liquidation switch on a crypto firm’s 479 Bitcoin if price drops to $45,094
USBC increased its Bitcoin-backed borrowing to $18 million in late July, secured by 479 Bitcoin valued at about $30.1 million on July 31. That left a 59.8% loan-to-value ratio and created price-sensitive collateral risk: at the facility’s 130% margin-call threshold, an illustrative Bitcoin price is about $48,852, which could trigger a 24-hour cure period requiring more collateral or partial repayment. At 120%, the lender can liquidate immediately and charge a 1% sale fee. The lender is Payward Interactive, a Kraken-affiliated entity, with Payward Financial as custodian. The exposure has grown from June’s $15 million balance backed by 336 Bitcoin, so both debt and pledged collateral increased. The loan bears 8.5% interest and matures July 28, 2027 unless repaid earlier. USBC said no call or liquidation had occurred as of July 31, and loan proceeds are funding its tokenized-deposit project.
