TL;DR:
Nakamoto Inc., the Bitcoin treasury company founded and led by entrepreneur David Bailey, reported during the first quarter of 2026. The decline in the value of its BTC holdings and a series of non-cash losses drove the period’s negative result.
According to the company’s earnings release, the primary cause of the poor results was a $102.5 million mark-to-market loss, stemming from bitcoin’s price decline from $87,519 to $68,220 during the quarter. Added to that was a $107.7 million non-cash charge tied to a call option that predated the company’s acquisition. Additionally, Nakamoto recorded approximately $8 million in transaction and integration costs related to recent acquisitions.
On the operational side, the company generated $2.7 million in operating revenue during the quarter, up from approximately $580,000 in the same period the prior year. Of that total, $1.1 million came from its bitcoin strategies segment and $1.6 million from its media, advisory and asset management businesses.
However, its BTC-related operations accumulated an operating loss of $109.9 million, which included the aforementioned mark-to-market loss and $7.9 million in investment losses tied to Metaplanet and Treasury B.V.
During the reported period, Nakamoto launched an active bitcoin derivatives strategy aimed at generating yield on its treasury assets. Through that initiative, the company received approximately 43 BTC in premium income and subsequently sold around 40 BTC. Separately, it sold 284 additional BTC to meet operating capital needs.
At the close of the quarter, Nakamoto reported holding more than 5,000 BTC with a market value of approximately $345 million. Bailey was unambiguous in his assessment of the results: “We continue to have high confidence in the long-term earnings power of the company we are building. Our focus for the rest of 2026 is execution,” he stated in the release. The company’s shares closed Wednesday at $0.1698, registering a 3.3% decline during the session.
