Nakamoto Posts Q1 Net Loss Despite 500% Revenue Surge

TLDR

• Nakamoto reported a 500% quarter on quarter increase in revenue during Q1 after completing two acquisitions in February.
• The company recorded a $238.8 million net loss during the quarter despite higher revenue.
• Nakamoto generated more than $1.1 million from its Bitcoin treasury and derivatives strategy.
• The firm reported a $102.5 million mark-to-market loss on its 5,058 Bitcoin holdings as Bitcoin fell 23%.
• Nakamoto sold 284 Bitcoin on March 31 to cover operational expenses.
• The company said BTC Inc. and UTXO Management will serve as core businesses for future growth.

Nakamoto posted a 500% quarter-on-quarter revenue increase in Q1 after closing two Bitcoin-focused acquisitions in February. However, the company recorded a $238.8 million net loss during the same period. Management linked the loss to non-cash charges and a decline in Bitcoin price.

Nakamoto Posts Higher Revenue After February Acquisitions

Nakamoto completed the acquisitions of BTC Inc. and UTXO Management on Feb. 20. The company said the deals expanded its presence across the Bitcoin ecosystem. CEO David Bailey said Q1 “marked a transformational period” for the company.

The firm reported more than $1.1 million from its Bitcoin treasury and derivatives strategy. It also generated $800,000 from media operations and $200,000 from asset management services. Meanwhile, healthcare operations contributed $500,000 during the quarter.

Nakamoto said the sixfold revenue increase included only a partial quarter contribution from the acquired businesses. The company finalized both transactions late in the quarter. As a result, management expects stronger revenue contributions in future periods.

Bitcoin Holdings Weigh on Quarterly Results

Nakamoto attributed most of its $238.8 million net loss to non-cash and market-related factors. The company recorded a $107.7 million non-cash reduction tied to a pre-acquisition option. It also reported a $102.5 million mark-to-market loss on its 5,058 Bitcoin holdings.

Bitcoin fell 23% during the quarter, which reduced the value of the company’s treasury. The broader market decline has pressured several Bitcoin treasury firms over the past year. Bitcoin remains 37% below its all-time high, based on company disclosures.

Nakamoto did not purchase additional Bitcoin during the quarter. Instead, the firm sold 284 Bitcoin on March 31 to cover operational expenses. The company confirmed the sale in its quarterly report.

Strategic Shift Toward Bitcoin-Focused Operations

Nakamoto said BTC Inc. and UTXO Management will serve as foundational businesses for long-term growth. The company plans to scale these operations through 2026. Bailey said, “Our focus for the remainder of 2026 is execution.”

He added that the firm aims to expand revenue opportunities and build shareholder value. Nakamoto plans to use its Bitcoin holdings as collateral for yield-generating derivatives strategies. The company said this approach supports disciplined capital allocation.

Nakamoto will wind down its healthcare business by the end of Q2. The firm changed its name from KindlyMD in January after merging with a Utah-based healthcare provider in August. Shares of Nakamoto rose 2.7% to $0.18 in after-hours trading following the earnings release.

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