David Bailey's Nakamoto reports $239 million Q1 loss as bitcoin treasury value slides
Quick Take
- Nakamoto posted a $238.8 million first-quarter net loss after recording a $102.5 million mark-to-market loss on its bitcoin holdings.
- The company said it held more than 5,000 bitcoin with a fair value of about $345 million as of March 31 and sold 284 BTC during the quarter to fund working capital needs.
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Nakamoto Inc., the bitcoin treasury firm led by entrepreneur David Bailey, reported a $238.8 million net loss for the first quarter of this year, as the company recorded non-cash losses tied to the decline in bitcoin (BTC) prices during the quarter.
The quarterly loss was mainly driven by a $102.5 million mark-to-market loss tied to bitcoin's decline from $87,519 to $68,220, alongside a $107.7 million non-cash reduction related to the company's pre-acquisition call option, according to its earnings statement released Wednesday.
Nakamoto also recorded about $8 million in transaction and integration costs related to its recent acquisitions, per the statement.
Meanwhile, the Nasdaq-listed company generated $2.7 million in first-quarter operating revenue, up from around $580,000 a year earlier. The total included $1.1 million from its bitcoin strategies and about $1.6 million from businesses spanning media, advisory and asset management operations.
Nakamoto's bitcoin operations segment posted a $109.9 million operating loss during the quarter, including the $102.5 million mark-to-market loss and $7.9 million in investment losses tied to Metaplanet and Treasury B.V., per the statement
The company also launched an actively managed bitcoin derivatives strategy during the quarter to generate yield on treasury assets and improve capital efficiency. Nakamoto said it received about 43 BTC in premium income through the strategy and later sold about 40 BTC, while separately selling 284 BTC to support working capital needs.
Nakamoto said it held more than 5,000 BTC as of March 31, valued at approximately $345 million at the time.
"We remain highly confident in the long-term earnings power of the company we are building," Nakamoto CEO David Bailey said in the statement. "Our focus for the remainder of 2026 is execution — scaling our operating businesses, expanding revenue opportunities, and continuing to build durable shareholder value through disciplined capital allocation and long-term conviction in bitcoin."
Shares of Nakamoto closed at $0.1698 on Wednesday, down 3.3% for the session.
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