Nakamoto Inc. reported a first‑quarter 2026 net loss of $238.8 million, driven largely by accounting charges tied to the slide in bitcoin prices and other non‑cash items, even as revenue nearly quadrupled from a year earlier.
Heavy mark-to-market hit from bitcoin
The largest drag on results was a $102.5 million mark‑to‑market loss on the company’s bitcoin holdings, triggered by the cryptocurrency’s drop from $87,519 to $68,220 during the quarter.
Nakamoto is required to revalue its digital assets to market each quarter, meaning the loss is a paper charge reflecting price moves rather than a realized sale.
The firm also booked a $107.7 million non‑cash reduction related to a pre‑acquisition call option, along with roughly $8 million of transaction and integration expenses tied to recent deals.
Overall, the bitcoin operations segment generated an operating loss of $109.9 million. That figure includes the mark‑to‑market decline and $7.9 million of investment losses on positions in Metaplanet and Treasury B.V.
Revenue jumps on bitcoin-focused strategy
Despite the headline loss, revenue for the quarter climbed to $2.7 million from $580,000 a year earlier, following Nakamoto’s shift to a bitcoin‑centric operating model.
Of the total, $1.1 million came from bitcoin strategies, while $1.6 million was generated by media, advisory and asset management activities. These businesses include the acquired operations of BTC Inc. and UTXO Management, which are now contributing to top‑line growth.
New derivatives strategy aims to generate yield
During the quarter, Nakamoto launched an actively managed bitcoin derivatives strategy aimed at producing yield on its treasury assets.
The program generated about 43 BTC in premium income. The company also sold roughly 40 BTC related to this strategy and disposed of an additional 284 BTC to fund working capital needs.
Management characterized the 284 BTC sale as an operational funding step rather than a shift in long‑term positioning toward bitcoin.
Large bitcoin treasury remains intact
As of March 31, Nakamoto held more than 5,000 BTC, with an estimated fair value of about $345 million, underscoring the scale of its exposure to the digital asset.
The sizable treasury leaves the company’s reported results highly sensitive to quarterly swings in bitcoin prices under current accounting rules.
Market backdrop: weak quarter, stronger spring
Bitcoin’s decline of more than 22% in the first quarter of 2026, its worst first‑quarter performance since 2018, provided the backdrop for Nakamoto’s mark‑to‑market loss. The move was shaped by macroeconomic uncertainty and ongoing regulatory questions around digital assets.
Conditions have shifted since the quarter’s close. In April, total crypto market capitalization rose more than 8%, while net inflows into bitcoin exchange‑traded funds nearly doubled month‑over‑month to about $1.97 billion.
Bitcoin has since rallied in early May, climbing back above $80,000, supported by renewed institutional demand.
Share performance
Nakamoto’s shares closed at $0.1698 on Wednesday, down 3.3% on the day. The stock reaction reflects the tension between improving revenue trends and the pronounced earnings volatility tied to the company’s bitcoin‑heavy balance sheet.
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