Nakamoto Inc. (NASDAQ: NAKA) has quietly been running an actively managed Bitcoin options program since Q1 2026, tapping Bitwise and Kraken to turn Bitcoin volatility into recurring income while hedging part of its downside exposure.
What the program does
- A defined slice of Nakamoto’s Bitcoin holdings is held in Kraken’s qualified custody and pledged as collateral into a separately managed account (SMA) run by Bitwise Asset Management.
- Under a single mandate, Nakamoto and Bitwise trade listed and OTC Bitcoin derivatives within strict guardrails—capping notional exposure as a percentage of total BTC holdings and limiting instruments, counterparties, and tenor.
- The strategy has two distinct sleeves:
- Income sleeve: Nakamoto writes covered calls and call spreads on a portion of its BTC to capture option premium—converting implied volatility into recurring income. Position sizing, strikes and expiries follow the company’s risk framework.
- Hedge sleeve: Nakamoto buys protective puts and put spreads over specified horizons to blunt downside mark‑to‑market swings. Where appropriate, put premiums are partially funded by call income.
Why it matters
- Nakamoto describes the approach succinctly on X: “Bitcoin’s implied volatility is one of the most persistently mispriced assets in global markets,” and the program aims to “generate volatility income and hedge downside risk” on part of its treasury.
- Premiums can be received in Bitcoin or U.S. dollars and may be reinvested into the company’s Bitcoin treasury, used to cover operating costs (including interest), or held as working capital. Performance for Q1 2026 will be disclosed in Nakamoto’s next 10‑Q.
Broader implications for crypto treasuries
- The move is notable because it applies a systematic covered‑call plus put‑hedge structure—common among commodity producers and gold ETFs—directly to a corporate BTC treasury, using regulated managers and qualified custody.
- It underscores Bitwise’s role as a bridge between traditional derivatives infrastructure and on‑chain exposure at a time more corporates are experimenting with Bitcoin on their balance sheets.
- Practically, the program demonstrates another way treasuries can treat Bitcoin not just as a passive store of value but as yield‑bearing collateral—sacrificing capped upside on the covered portion in exchange for steady cash flow and partial downside protection.
Nakamoto’s program adds a live, regulated example of how corporations can monetize volatility while managing crypto risk—expect more companies to watch results once Q1 figures are published.
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