UTXO Management Introduces Dual-Class Digital Credit Income Fund for Institutional Investors

UTXO Management, a subsidiary of Nakamoto Inc. (NASDAQ: NAKA), announced the formation of UTXO Preferred Income Strategies LP, a Delaware limited partnership structured to provide access to income from preferred digital credit securities. The fund introduces a dual-class structure designed to serve different allocator objectives within a single vehicle.

The structure includes two distinct classes:

• Senior Income Class: Targets a fixed annual coupon paid monthly as a return of capital, sourced from preferred dividend streams. Distributions flow first to this class, ahead of fees and junior allocations. The structure seeks to deliver yield above short-term U.S. Treasury bills, supported by a junior equity cushion. This class carries no management or performance fees.
• Total Return Class: Targets return through residual income after senior distributions. The strategy includes disciplined leverage, relative value positioning across the preferred digital credit stack, and participation in new issuance. This class absorbs first loss and captures upside tied to spread compression and income growth.

The fund’s initial portfolio is expected to include digital credit instruments such as the Strategy Variable Rate Perpetual Stretch Preferred Security (STRC). These instruments form part of a growing segment within capital markets that blends features of fixed income with digital asset exposure.

“We designed our first structured credit product, UTXO Preferred Income Strategies LP, to give allocators access to these dividend-paying securities, with the capital structure enhancements, institutional servicing, and operational transparency they require.”

UTXO’s Expansion into Credit

Since 2019, UTXO Management and its affiliates have launched and managed several investment vehicles across the Bitcoin ecosystem, including:

• Bitcoin Ecosystem Fund: Focused on venture investments.
• 210k Capital, LP: A hedge fund strategy centered on Bitcoin and related instruments.

The launch of UTXO Preferred Income Strategies LP marks the firm’s entry into structured credit, extending its platform into income-oriented strategies. UTXO Management operates as a Bitcoin-native asset manager across public and private markets, allocating capital across liquid securities, venture investments, and strategic partnerships tied to Bitcoin infrastructure and adoption.

Nakamoto Inc., its parent company, holds and operates a portfolio of Bitcoin-native businesses.

Investment Details and Risks

The fund will be offered to accredited investors who also meet the definition of qualified purchasers under applicable securities laws. Interests will be sold through private placement and will not be registered under the Securities Act of 1933. Investment decisions must rely on the fund’s offering documents, which contain full details on terms, risks, and structure.

The strategy involves a high degree of risk, including:

• Regulatory uncertainty surrounding digital credit securities.
• Liquidity constraints and valuation challenges.
• Potential use of leverage, which can increase losses.
• Dependence on the performance of underlying assets and the sufficiency of the junior equity layer to protect senior distributions.