Nakamoto posted a $238.8M Q1 loss as Bitcoin’s 23% decline weighed heavily on its treasury holdings.
Bitcoin (BTC) company Nakamoto reported a $238.8 million net loss in Q1 2026, even as revenue grew sixfold quarter-over-quarter following two acquisitions completed in February. CEO David Bailey called the period a "transformational" quarter for the company.
The bulk of the loss came from two non-cash charges: a $107.7 million reduction linked to a pre-acquisition option and a $102.5 million mark-to-market loss on the company's 5,058 $BTC treasury, which lost value as $BTC fell 23% during the quarter.
Nakamoto completed the acquisitions of Bitcoin-focused news outlet BTC Inc. and investment platform UTXO Management on Feb. 20. The company said that though the acquired platforms’ contribution has covered only a partial quarter, it believes both will serve as foundational businesses for long-term growth in the Bitcoin ecosystem.
Revenue broke down across four segments: $1.1 million from its Bitcoin treasury and derivatives strategy, $800,000 from media, $500,000 from healthcare operations, and $200,000 from asset management. Nakamoto also plans to fully wind down its healthcare business by the end of Q2 2026.
The company did not acquire any $BTC during the quarter, but sold 284 BTC on March 31 to cover operational expenses. Nakamoto shares (NAKA) rose 2.7% to $0.18 in after-hours trading following the earnings release. The stock remains down over 99.2% from its all-time high.
The broader #Bitcoin treasury sector has come under pressure, with $BTC down 37% from its all-time high. Most treasury companies outside Strategy and Metaplanet have slowed purchases over the past 12 months, and some have sold holdings to cover debt.
Bailey said the company's focus for the rest of 2026 is execution across its operating businesses, including expanding revenue and building shareholder value through disciplined capital allocation. One planned strategy involves using Bitcoin holdings as collateral to run yield-generating #derivatives positions.
Nakamoto changed its name from KindlyMD in January following a merger with the Utah-based #healthcare provider announced in August of last year.
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