NASHVILLE, Tenn. – Nakamoto Inc. (NASDAQ:NAKA) announced Thursday it has been operating a Bitcoin derivatives program since the first quarter of 2026, managed in partnership with Bitwise Asset Management and Kraken Institutional Services. The announcement comes as the company’s stock trades at $0.23, down 87% from its 52-week high of $34.77, with shares falling 73% over the past six months.
The program uses a portion of the company’s Bitcoin holdings as collateral for derivatives strategies executed through a separately managed account. Bitcoin held in Kraken’s custody solution backs the positions, which the company says are designed to generate income and provide downside protection.
The program operates through two components. An income sleeve writes covered calls and call spreads against Bitcoin holdings to collect premium income from options markets. A hedging sleeve purchases protective puts and put spreads to reduce exposure to Bitcoin price declines over defined periods.
“Bitcoin’s implied volatility is one of the most persistently mispriced assets in capital markets,” said Tyler Evans, Chief Investment Officer of Nakamoto and UTXO Management. “Working with institutional-grade partners like Bitwise and Kraken, we have built a disciplined framework to harvest that premium systematically.”The derivatives initiative represents a strategic pivot for the company, which carries a market capitalization of $155.8 million and operates with a significant debt burden, according to InvestingPro analysis. While Nakamoto posted a loss of $0.26 per share over the last twelve months, analysts forecast the company will turn profitable this year with projected earnings of $0.01 per share. InvestingPro subscribers have access to over 10 additional exclusive tips about NAKA, along with comprehensive financial health scores and Fair Value analysis.
Premiums are collected and paid in both Bitcoin and U.S. dollars depending on the instrument and counterparty. The company may use premium income to fund hedging costs, acquire additional Bitcoin, or for general corporate purposes.
Bitcoin used as collateral for written options remains owned by Nakamoto and is included in the company’s publicly reported Bitcoin holdings. Protective positions are held in addition to spot Bitcoin holdings. The company reported revenue of $1.82 million over the last twelve months, with analysts anticipating 25% revenue growth in the current year.
The program operates under an investment mandate that specifies maximum notional exposure as a percentage of total Bitcoin holdings, permitted instruments and counterparties, and collateral requirements. Written call positions limit the company’s participation in Bitcoin price appreciation above the strike price.
Results from the program’s first quarter 2026 operations will be included in the company’s Form 10-Q for that period, according to the press release statement.
In other recent news, Nakamoto Inc. has completed its acquisitions of BTC Inc and UTXO Management GP, LLC. The transaction, valued at $81.6 million, was paid entirely in Nakamoto common stock and stock options. BTC Inc and UTXO securityholders received 364,795,104 shares of Nakamoto common stock. In an earlier announcement, Nakamoto disclosed plans to acquire these companies in an all-stock transaction initially valued at approximately $107.3 million, with the transaction expected to close in the first quarter of 2026.
Additionally, Nakamoto Inc. has amended its Master Loan Agreement with Payward Interactive, Inc. This amendment allows Nakamoto Holdings, a subsidiary of Nakamoto Inc., to use a designated trading wallet as collateral for its loan obligations. The assets in this trading wallet will serve as security for both existing and future obligations under the agreement. These developments mark significant strategic moves for Nakamoto Inc. as it continues to expand its operations and financial arrangements.
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