NAKA · Nakamoto Inc.

Nakamoto Inc.’s Q1 2026 results reflect a pivotal strategic inflection point: the formal transition into a Bitcoin operating company following the February 20, 2026 acquisitions of BTC Inc. and UTXO Management. While total operating revenue rose to $2.7 million—up from $0.6 million year-over-year—the financial statement impact is dominated by non-operating, non-cash items: a $102.5 million mark-to-market loss on Bitcoin holdings due to price decline from $87,519 to $68,220, and a $107.7 million non-cash reduction in the cumulative gain from the pre-acquisition call option. These items account for over 88% of the $238.8 million net loss, underscoring that GAAP earnings are not reflective of underlying operating performance during this integration phase. Operationally, the Company generated $1.6 million in revenue from newly acquired businesses—including $0.8 million from Media & Information Services and $0.2 million from Asset Management—but incurred $3.9 million in operating losses across those segments, largely due to amortization of intangible assets and partial-quarter ownership. The Bitcoin Operations segment contributed $1.1 million in derivative-related revenue but posted a $109.9 million operating loss, almost entirely attributable to the Bitcoin price decline and $7.9 million investment losses. Liquidity remains stable with $35.3 million cash on hand and $345 million in Bitcoin reserves, though the Company sold 284 BTC for working capital and executed active derivatives positioning (net +3 BTC). Management emphasized execution focus for the remainder of 2026—scaling operations, expanding revenue, and completing the wind-down of legacy healthcare activities by end-Q2—while reiterating long-term conviction in Bitcoin’s role as both reserve asset and income-generating collateral. Notably, Nakamoto discontinued its supplemental operational dashboard, signaling tighter alignment with SEC reporting standards and reduced forward-looking disclosure granularity.