Why did Nakamoto report a large Q1 net loss?

Nakamoto reported a $238.8 million first-quarter net loss mainly due to non-cash accounting charges and falling Bitcoin prices. The company recorded a $102.5 million mark-to-market loss on its Bitcoin treasury after Bitcoin declined 23% during the quarter.

Did Nakamoto’s revenue still grow despite the loss?

Yes, Nakamoto said revenue increased 500% quarter-on-quarter following its acquisitions of BTC Inc. and UTXO Management. The company generated revenue from Bitcoin treasury operations, media, healthcare and asset management activities.

How much revenue did Nakamoto generate from Bitcoin operations?

Nakamoto generated more than $1.1 million from Bitcoin treasury and derivatives strategies during the quarter. The company is increasingly focusing on Bitcoin-related businesses as it exits healthcare operations.

Why is Nakamoto moving away from healthcare operations?

Nakamoto said it plans to fully wind down its healthcare business by the end of Q2 to concentrate on Bitcoin-focused operations. The shift follows the company’s rebrand from KindlyMD earlier this year after merging with the healthcare provider.

How much Bitcoin does Nakamoto currently hold?

Nakamoto held 5,058 Bitcoin during the quarter according to the report. The value of those holdings declined significantly as Bitcoin prices fell during Q1.

Did Nakamoto buy or sell Bitcoin during the quarter?

The company did not purchase additional Bitcoin during the quarter. However, it sold 284 Bitcoin on March 31 to help cover operating expenses amid pressure across the Bitcoin treasury sector.

Why are Bitcoin treasury companies under pressure?

Many Bitcoin treasury firms have struggled because Bitcoin remains well below its all-time highs. Falling crypto prices can reduce the value of treasury holdings, pressure balance sheets and increase concerns around debt sustainability.

How has Nakamoto stock performed recently?

Nakamoto shares remain down more than 99% from their all-time high despite rising 2.7% in after-hours trading following the earnings release. The stock’s long-term decline reflects broader weakness across speculative crypto-linked equities.

Nakamoto posts Q1 loss despite revenue surge

Written by Brie CarterPublished May. 14 2026

Nakamoto reported a $238.8 million net loss in the first quarter despite recording a 500% quarter-on-quarter increase in revenue following the acquisitions of BTC Inc. and UTXO Management in February.

The company generated more than $1.1 million from its Bitcoin treasury and derivatives operations, alongside approximately $800,000 from media activities, $500,000 from healthcare operations and $200,000 from asset management services during the quarter.

Chief executive David Bailey said the first quarter “marked a transformational period” for the company as it expanded deeper into the Bitcoin ecosystem through strategic acquisitions and operating diversification.

Nakamoto said the majority of the quarterly loss stemmed from a $107.7 million non-cash reduction linked to a pre-acquisition option and a $102.5 million mark-to-market loss on its 5,058 Bitcoin treasury after Bitcoin fell 23% during the quarter.

The company sold 284 Bitcoin on March 31 to cover operational expenses and did not purchase additional Bitcoin during the quarter as pressure continued building across the broader Bitcoin treasury sector amid declining crypto prices.

Nakamoto shares remain down more than 99% from all-time highs despite rising 2.7% in after-hours trading following the earnings release, while the company said it plans to use its Bitcoin holdings as collateral for yield-generating derivatives strategies moving forward.

Nakamoto also confirmed plans to fully exit its healthcare operations by the end of the second quarter as it sharpens focus on Bitcoin-related businesses following its rebrand from KindlyMD earlier this year.

At the time of reporting, Bitcoin price was $79,773.68.