Nakamoto, a company focused on the Bitcoin ecosystem, posted a remarkable 500 percent increase in revenue for the first quarter compared to the previous period. This dramatic growth was largely attributed to two strategic acquisitions it completed in February. The company recently added the Bitcoin-focused news platform BTC Inc. and Bitcoin investment firm UTXO Management to its portfolio.
Strategic acquisitions and financial performance
In the first three months of the year, Nakamoto generated more than $1.1 million in revenue through its new Bitcoin reserve and derivatives investment strategy. The company also earned $800,000 from media operations, $500,000 from healthcare activities, and $200,000 from asset management.
Despite the significant revenue growth, Nakamoto recorded a net loss of $238.8 million for the quarter. The primary drivers of this loss were a $107.7 million non-cash impact from an option granted before the acquisitions and a $102.5 million impairment loss on the company’s 5,058 BTC holdings. Nakamoto’s Bitcoin assets declined by 23 percent in value over the quarter.
Chief Executive David Bailey described the first quarter as a major transformation period for the company, stressing that BTC Inc. and UTXO Management would be foundational for long-term growth in the Bitcoin ecosystem.
Bitcoin reserves and market pressures
The ongoing pressure on Bitcoin treasuries over the past year has also weighed on Nakamoto. Analysts have underscored growing concerns about the sustainability of “buy and hold” strategies since Bitcoin’s peak, with the leading cryptocurrency down 37 percent from its all-time high.
Across the market, many companies slowed their BTC purchases in the last 12 months, while some had to tap into reserves to cover debt payments. Nakamoto was among the hardest hit, as its share price fell by a staggering 99.2 percent from its highest point.
During the quarter, Nakamoto did not buy any new Bitcoin; instead, it sold 284 BTC on March 31 to cover operational expenses.
Future outlook and operational shift
Following the announcement of its financial results, Nakamoto’s stock, traded under the ticker NAKA, rose 2.7 percent in after-hours trading to $0.18 per share.
Nakamoto is optimistic that the integration of BTC Inc. and UTXO Management will boost its revenues even further in upcoming quarters. The company highlighted that benefits from these acquisitions were only partially reflected in the latest quarter, as both deals closed on February 20.
Chairman David Bailey stated that the company’s main goals for the remainder of 2026 are to expand its business lines, create new sources of income, and generate lasting value for shareholders, all underpinned by a long-term belief in Bitcoin. Plans include using its Bitcoin reserves as collateral for derivative products and winding down healthcare operations entirely by the end of the second quarter.
Nakamoto changed its name from KindlyMD in January, following an August merger with a Utah-based healthcare provider. The name change reflects its new strategic direction focusing on Bitcoin investments.
