Key Takeaways:
Nakamoto Inc. (NASDAQ: NAKA) launched an actively managed derivatives program using a portion of its 5,098 BTC treasury to generate income and hedge against downside price risk, the company announced on April 24.
"Bitcoin's implied volatility is one of the most persistently mispriced assets in capital markets," Tyler Evans, Chief Investment Officer of Nakamoto and UTXO Management, said. "We have built a disciplined framework to harvest that premium systematically, at scale, and convert that opportunity into long-term value for shareholders."
The program, which has been operating since the first quarter of 2026, is managed by Bitwise Asset Management in a separately managed account, with Kraken Institutional providing custody. It consists of an income sleeve, which writes covered call options against its Bitcoin, and a hedging sleeve, which purchases protective put options. Premiums from the income sleeve can fund the hedging costs, with proceeds paid in either Bitcoin or U.S. dollars.
This strategy shift comes as Bitcoin-holding companies face balance sheet pressure, with Bitcoin's price near $78,151, down approximately 38% from its October 2025 high of $126,198. The move allows Nakamoto to generate yield from its assets without selling its spot Bitcoin, which remains under the company's ownership. Nakamoto's stock was trading around $0.22, down roughly 46% year-to-date.
Nakamoto's derivatives-based approach contrasts with other treasury firms that have resorted to selling assets. In February, Genius Group liquidated its entire 84 BTC treasury to repay debt, while Empery Digital sold 357.7 BTC for about $24.7 million. Nakamoto itself sold 284 BTC for approximately $20 million in March.
The use of derivatives allows institutions to manage risk while maintaining their core long-term exposure to Bitcoin. By writing covered calls, Nakamoto can earn premium income, though it may cap the potential upside on the Bitcoin used as collateral. The protective puts provide a buffer against significant price declines, reducing the risk of forced liquidation in a market downturn.
The program highlights a growing sophistication in how publicly-listed companies manage their digital asset holdings. As institutional involvement in Bitcoin grows, passive "hodling" is giving way to more active strategies that treat Bitcoin's volatility as an asset to be monetized rather than just a risk to be endured.
The effectiveness of this strategy will be detailed in Nakamoto’s upcoming first-quarter 2026 Form 10-Q filing. The success of the program could provide a new template for the more than 20 public companies holding significant Bitcoin on their balance sheets, moving them beyond simple accumulation and toward active, yield-generating treasury management.
This article is for informational purposes only and does not constitute investment advice.
