Bitcoin Firm Nakamoto Surges In Revenue But Bleeds Cash In Q1

Nakamoto sold 284 Bitcoin on the last day of March just to keep the lights on. That detail, tucked inside the company’s first-quarter results released Wednesday, captures where the Bitcoin treasury firm stands heading into the second half of 2026 — growing fast on paper, but still burning through cash.

A Rough Quarter By The Numbers

The company posted a net loss of $238 million for Q1, a figure that looks alarming until the accounting is unpacked. Two non-cash items drove most of the damage: a $107 million charge tied to a pre-acquisition option, and a $102 million mark-to-market hit on its 5,058 Bitcoin holdings after the cryptocurrency dropped 23% during the quarter.

Despite that, revenue climbed more than 500% compared to the prior quarter, reaching $2.7 million. The jump was fueled by contributions from four business lines — Bitcoin treasury and derivatives brought in $1 million, the media arm added $800,000, healthcare operations contributed $500,000, and asset management services generated $200,000.

CEO David Bailey called Q1 a transformational period for the company. He pointed to two acquisitions — Bitcoin news outlet BTC Inc. and investment platform UTXO Management — as the deals that set the stage for what comes next. Both acquisitions closed on February 20, meaning their revenue contribution only counted for part of the quarter.

Acquisitions Shape The New Direction

Nakamoto has been repositioning itself well beyond a simple Bitcoin holding company. The BTC Inc. and UTXO Management deals are described as foundational businesses that will anchor the company’s presence across the Bitcoin ecosystem.

Bailey said the focus for the rest of 2026 is execution — scaling operations, growing revenue, and building shareholder value through what he called disciplined capital allocation.

One planned revenue driver involves using Bitcoin holdings as collateral to run yield-generating derivatives strategies. The company also confirmed it will fully wind down its healthcare business by the end of Q2, putting more resources toward Bitcoin-related activities.

Nakamoto was previously known as KindlyMD before a merger with a Utah-based healthcare provider in August, followed by a full rebrand in January.

Nakamoto’s share price tells a harder story. Reports show the stock has fallen more than 99% from its all-time high. After the Q1 results were published, shares rose 2.7% in after-hours trading to $0.18 — a modest bounce that reflects cautious optimism rather than a broad recovery.

The company did not purchase any Bitcoin during the quarter. The broader Bitcoin treasury industry has faced pressure as the cryptocurrency sits roughly 37% below its record high.

Data shows most treasury-focused firms outside of Strategy and Metaplanet have pulled back on Bitcoin purchases over the past year. Some have sold portions of their holdings to cover debt obligations.

Featured image from The Daily Economy, chart from TradingView