Nakamoto Inc. reported a $238.8 million net loss for the first quarter of 2026 after falling Bitcoin (BTC) prices weighed heavily on the company’s balance sheet. The firm, led by David Bailey, released the results for the quarter ending March 31, 2026, following recent acquisitions and expansion of its Bitcoin treasury operations.
The company said in the report that weaker crypto markets and accounting-related adjustments drove most of the quarterly loss. Bitcoin prices fell from $87,519 at the end of December to $68,220 by March 31. As a result, Nakamoto Inc. recorded a $102.5 million mark-to-market loss on its Bitcoin holdings. The company also reported a $107.7 million decline tied to its pre-acquisition call option strategy.
Bitcoin strategy expands despite heavy losses
Despite the quarterly loss, Nakamoto Inc. continued expanding its Bitcoin-focused business during the quarter. The company completed the acquisitions of BTC Inc. and UTXO Management in February. As a result, Nakamoto increased its presence across media, advisory, and digital asset management services.
The company also launched a Bitcoin derivatives strategy aimed at generating treasury yield and improving capital efficiency. Management said the strategy would help reduce downside risk during volatile market conditions.
Nakamoto reported $2.7 million in operating revenue for the quarter. The total included $1.6 million from operating businesses and $1.1 million from Bitcoin treasury activities. However, losses widened across several divisions during the period.
Bitcoin operations posted a $109.9 million operating loss, driven partly by investment losses tied to Metaplanet and Treasury B.V. Meanwhile, the company’s media and advisory segment recorded a $2.8 million operating loss despite generating $0.8 million in revenue.
Liquidity pressures shape company decisions
Nakamoto Inc. held more than 5,000 Bitcoin at the end of March, with an aggregate fair value of about $345 million. During the quarter, the company sold roughly 284 Bitcoin to support working capital needs. Nakamoto also sold nearly 40 Bitcoin out of the 43 BTC it received through derivatives premium income.
Chief Executive David Bailey said the quarter marked an important period for the company despite weaker financial results. “During the quarter, we completed the acquisitions of BTC Inc. and UTXO Management,” Bailey said. He added that Nakamoto remains focused on long-term growth across the Bitcoin sector.
The company ended the quarter with $35.3 million in cash reserves, while enterprise value reached $327 million. Nakamoto shares closed Wednesday at $0.1698, down 3.3% for the session.
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