Nakamoto Inc. Launches Bitcoin Options Strategy With Bitwise and Kraken

Nakamoto Inc. states that part of its Bitcoin holdings will support a derivatives program, with Kraken providing compliant custody and Bitwise managing option strategies in a separately managed account.

BTC

Summary

Nakamoto Inc. (NASDAQ: NAKA) said it has launched a Bitcoin derivatives program using part of its Bitcoin holdings as collateral. According to the announcement, the assets will be placed in Kraken’s compliant custody solution, while Bitwise will manage covered calls, call spreads, protective puts, and put spreads through a separately managed account. The company’s previously disclosed approach of using options on a portion of its Bitcoin position now includes additional details on collateral use, custody, account structure, and the specific derivatives strategies involved.

Terms & Concepts
  • Covered calls: An options strategy where an investor sells call options against assets it already owns, collecting premium income but limiting some upside above the strike price.
  • Protective puts: Put options purchased to help limit downside losses on an underlying asset by giving the holder the right to sell at a set price.
  • Put spreads: An options strategy using multiple put positions at different strike prices to create defined downside exposure and risk limits.