Warrant Wire
The Warrant That Outlived Its Loan: Carbyne Position Marked at 17x Cost After Payoff
- Strategic Partnership Warrants
- Tech
- United States
At a glance
Warrants run on the equity's clock, not the loan's. A Carbyne warrant Hercules acquired in February 2025 at a $24K cost basis remains on the Q1 2026 books at a $410K mark — roughly 17x cost — even though the underlying loan has been fully repaid.
Wrnt’s perspective
Warrants run on the equity's clock, not the loan's. They outlive repayment, surface as restructuring currency, and keep generating obligations — vesting mechanics, adjustments, corporate actions, exercise windows, expirations — long after the credit relationship ends. For issuers, that is a cap-table entry that persists well past the banking relationship; for lenders, it is why a warrant portfolio is an infrastructure and governance problem as much as an origination strategy. The upside case for holding on is visible in the same filing: 17x cost, on a loan that no longer exists.