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Nakamoto Reports 500% Revenue Growth but Posts $238.8 Million Q1 Net Loss

According to the company, Nakamoto posted a nearly $239 million first-quarter net loss after pivoting to a Bitcoin operating company, while selling part of its Bitcoin holdings for working capital and retaining more than 5,000 BTC.

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Fact Check
The official Nakamoto Q1 2026 earnings press release on BusinessWire directly confirms the $238.8M net loss figure, its non-cash and transaction-driven composition ($102.5M BTC mark-to-market + $107.7M call option reduction), and the operating revenue of $2.7M. The 500% quarter-over-quarter revenue growth figure is consistent with the revenue rising from approximately $450K-$580K in the prior quarter to $2.7M, as corroborated by The Block and crypto.news. David Bailey is confirmed as CEO. All material claims are supported by the primary official source.
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Summary

Nakamoto, the Bitcoin treasury company led by David Bailey, reported first-quarter revenue of $2.7 million and a net loss of $238.8 million after formally pivoting to a Bitcoin operating company. The company had previously said revenue rose 500% quarter over quarter, while the loss was driven mainly by a $107.7 million non-cash impairment tied to pre-acquisition options and a $102.5 million unrealized loss on 5,058 Bitcoin held on the balance sheet as Bitcoin prices fell. Nakamoto said it sold 284 BTC worth about $22 million and 40 BTC worth about $3.2 million for working capital, and it still holds more than 5,000 BTC valued above $400 million. The company announced the results on the 13th after completing acquisitions of BTC Inc. and UTXO Management.

Terms & Concepts
  • Bitcoin operating company: A company whose business model is centered on Bitcoin-related operations, rather than only holding Bitcoin as a reserve asset.
  • Unrealized loss: A decline in the value of an asset that has not been locked in through a sale, but still affects reported results under accounting rules.
  • Bitcoin treasury: A corporate reserve strategy that holds Bitcoin as a balance-sheet asset rather than cash or other traditional holdings.