Nakamoto (NAKA) Unveils Bitcoin Derivatives Strategy to Generate Yield and Mitigate Risk

Nakamoto Inc. has launched an actively managed Bitcoin derivatives program designed to generate income from market volatility while reducing downside exposure, according to a company statement released on Friday.

The program, which has been operational since the first quarter of 2026, serves as a complement to Nakamoto’s core strategy of holding Bitcoin as a treasury asset. It utilizes a portion of the company’s Bitcoin holdings as collateral in a derivatives strategy managed by Bitwise Asset Management through a separately managed account. Custody services are provided by Kraken Institutional.

Program Structure and Components

The initiative consists of two primary components:

• Income sleeve: Involves writing covered calls and call spreads against a defined share of Nakamoto’s Bitcoin holdings. This approach aims to capture premiums from options markets, where implied volatility in Bitcoin pricing often exceeds realized volatility.
• Hedging sleeve: Focuses on purchasing protective puts and put spreads to offset potential losses during price declines, providing a buffer against adverse market moves. Premiums generated from the income sleeve may help fund the cost of these protective positions.

Bitcoin’s Volatility as Opportunity

«Bitcoin’s implied volatility represents a consistent source of opportunity,» said Tyler Evans, chief investment officer of Nakamoto and UTXO Management. «This program is a structured effort to convert that volatility into shareholder value while maintaining exposure to the underlying asset.»

Bitcoin used as collateral within the program remains under Nakamoto’s ownership and continues to be counted toward its reported holdings. The company emphasized that derivatives positions supplement its spot Bitcoin exposure rather than replace it.

Premiums and Allocation

Premiums collected through the program may be received in either Bitcoin or U.S. dollars, depending on the structure of each trade. Nakamoto stated that these proceeds can be allocated toward hedging costs, additional Bitcoin purchases, or general corporate needs in line with its capital allocation strategy.

Risk Management and Governance

The program operates under a unified investment mandate that defines limits on notional exposure, eligible instruments, counterparties, and custody requirements. It also accounts for the tradeoff between income generation and potential limits on upside participation due to call option positions.

Nakamoto framed the strategy as part of a broader effort to generate yield from its Bitcoin treasury while maintaining long-term accumulation goals. The company noted that the hedging component is intended to support balance sheet stability and reduce the risk of forced asset sales during periods of market stress.

Performance and Disclosure

Performance details from the program’s first quarter of operation are expected to be disclosed in Nakamoto’s upcoming Form 10-Q filing.

Bitcoin Magazine is published by BTC Inc, a subsidiary of Nakamoto Inc. (NASDAQ: NAKA)

This post first appeared on Bitcoin Magazine and is written by Micah Zimmerman.