Nakamoto Inc., a Nashville-based Bitcoin-native holding company, today outlined a Bitcoin derivatives strategy it began operating in early 2026, combining options-based income generation with downside protection.
According to the official announcement, the program is structured around a portion of the firm’s existing Bitcoin holdings and is designed to complement its broader treasury strategy. The company said the approach relies on institutional partners, with Bitwise Asset Management managing the strategy and Kraken providing custody for the collateral.
Structure: Income and hedging combined
The program splits activity into two components.
The first focuses on generating income by writing covered calls and call spreads on Bitcoin holdings. These trades collect premiums by selling upside exposure at predefined price levels.
The second component is built around risk reduction. Nakamoto uses protective puts and put spreads to limit potential losses during periods of price decline. In some cases, income from the first strategy is used to offset the cost of these hedges.
Together, the structure aims to balance yield generation with capital preservation rather than relying solely on price appreciation.
Bitcoin held as collateral
A portion of Nakamoto’s Bitcoin is placed in custody through Kraken and used as collateral for the derivatives positions. The company said these assets remain on its balance sheet and continue to be counted toward its total Bitcoin holdings.
The strategy is executed through a separately managed account, with Bitwise overseeing trade selection, position sizing, and risk parameters under a defined mandate.
Focus on volatility as a revenue source
The firm’s approach centers on Bitcoin’s options market, where implied volatility can create pricing gaps. By systematically selling options, the company aims to capture recurring premiums tied to that volatility.
At the same time, hedging positions are intended to reduce exposure to sharp price declines, which can affect balance sheet stability and liquidity in stressed conditions.
Expansion into media and asset management
The move comes months after Nakamoto expanded its footprint in the Bitcoin ecosystem. The company, formerly known as KindlyMD, signed agreements to acquire BTC Inc and UTXO Management in an all-stock transaction valued at approximately $107.3 million.
The deal involved issuing 363.6 million shares and is expected to close in the first quarter of 2026. BTC Inc operates publications such as Bitcoin Magazine and organizes The Bitcoin Conference, while also running enterprise initiatives focused on corporate Bitcoin adoption. UTXO Management, meanwhile, advises Bitcoin-focused investment vehicles, including hedge fund strategies.
The acquisitions signal a broader effort by Nakamoto to combine treasury operations with media, advisory, and investment services tied to Bitcoin markets.
Execution and oversight
The latest program is overseen internally by Nakamoto’s investment team, working alongside Bitwise. It includes limits on total exposure relative to Bitcoin holdings, as well as guidelines on instruments, counterparties, and margin requirements.
Premiums earned from options trades may be received in Bitcoin or U.S. dollars, depending on the structure of each transaction. The company said proceeds can be allocated toward hedging costs, additional Bitcoin purchases, or general operations.
Part of a broader treasury strategy
Nakamoto positioned the derivatives program as one element of a wider effort to manage its Bitcoin treasury more actively. Rather than holding assets passively, the firm is using financial instruments to influence income and risk outcomes.
Performance from the strategy’s first quarter of operation is expected to be disclosed in the company’s upcoming financial filings.
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