Nakamoto Shares Slip After $238M Bitcoin-Linked Loss
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Nakamoto Inc. reported a Q1 net loss of $238.8 million, driven by a $102.5 million mark-to-market loss after Bitcoin fell from roughly $87,519 to $68,220 and a $107.7 million non-cash reduction tied to a pre-acquisition call option; operating revenue rose to $2.7 million from $580,000 but bitcoin operations still posted a $109.9 million operating loss and the company incurred about $8 million in transaction and integration expenses. Management launched an actively managed Bitcoin derivatives strategy that generated ~43 BTC in premium income (sold ~40 BTC) and sold 284 BTC for working capital, but the quarter highlights market-risk exposure, short-term funding pressure and negative investor sentiment in the crypto sector as shares fell 3.3%.
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The company recorded a $102.5 million mark-to-market loss as Bitcoin fell from roughly $87,519 to $68,220, alongside a $107.7 million non-cash reduction linked to a pre-acquisition call option. Despite the losses, Nakamoto’s operating revenue increased to $2.7 million from about $580,000 a year earlier.
Nakamoto Posts $238M Loss
Nakamoto Inc., the bitcoin treasury firm led by entrepreneur David Bailey, reported a first-quarter net loss of $238.8 million after the company was hit by major non-cash losses tied to the decline in Bitcoin prices during the quarter.
BTC’s price action over the past 6 months (Source: CoinCodex)
The company’s quarterly losses were largely driven by a $102.5 million mark-to-market loss after Bitcoin declined from roughly $87,519 to $68,220 during the reporting period. Mark-to-market losses occur when companies adjust the value of assets on their balance sheets to reflect current market prices, even if the assets have not yet been sold. Nakamoto also recorded an additional $107.7 million non-cash reduction connected to a pre-acquisition call option linked to the company’s recent expansion activities.
Alongside these losses, the company reported approximately $8 million in transaction and integration expenses related to acquisitions completed during the quarter. Despite the sharp decline in profitability, Nakamoto still managed to grow its operating revenue compared to the same period last year.
First-quarter operating revenue reached $2.7 million, which was a strong increase from approximately $580,000 a year earlier. However, Nakamoto’s bitcoin operations segment still posted a total operating loss of $109.9 million during the quarter. This included the large mark-to-market losses and approximately $7.9 million in investment losses tied to holdings in Metaplanet and Treasury B.V.
During the quarter, Nakamoto also launched an actively managed bitcoin derivatives strategy that is designed to generate additional yield from its treasury holdings while improving capital efficiency. Through this strategy, the company earned roughly 43 BTC in premium income before later selling approximately 40 BTC. Separately, Nakamoto sold 284 BTC to help support working capital needs.
Despite the difficult quarter, CEO David Bailey said the company is still very confident in its long-term strategy and future earnings potential. Bailey stated that Nakamoto’s primary focus for the remainder of 2026 will be executing its expansion plans, scaling operating businesses, increasing revenue opportunities, and continuing to build long-term shareholder value through disciplined capital allocation and long-term conviction in Bitcoin.
Nakamoto’s share price over the past 24 hours (Source: Google Finance)
Shares of Nakamoto closed Wednesday at $0.1698, down 3.3% for the trading session.
