0001493152-26-022777
SEC filingRevenue grew significantly year-over-year, reflecting the integration of new business lines; however, substantial non-cash losses drove record net losses and negative operating cash flow, consistent with the company’s capital-intensive, asset-sensitive strategy.
Liquidity remains supported by Bitcoin held on our balance sheet, cash and cash equivalents, goodwill and intangibles, and investments in unconsolidated investees. The increase in net cash used in operating activities is primarily due to an increase in cash overhead expenses and BTC Inc and UTXO acquisition related expenses. This reflects the operational ramp-up following recent strategic consolidations.
Revenue for Q1 FY2026 totaled $2.7M, a 362.0% increase from $579.7K in Q1 FY2025. This growth stems from the consolidation of BTC Inc and UTXO — entities acquired in February 2026 — which now contribute to the consolidated financial statements for the first time. BTC Inc had a call option to purchase UTXO Management GP, LLC (“UTXO”), an investment firm focused on private and public Bitcoin companies, indicating strategic alignment across media, asset management, and infrastructure verticals.
Operating income declined to -$126.2M from -$1.0M year-over-year, and net income declined to -$238.8M from -$1.0M. These results reflect significant non-cash losses tied to fair value accounting for digital assets and derivative instruments. As noted in management commentary, our ability to monetize Bitcoin holdings may be affected by market liquidity, trading volumes, counterparty availability, custody arrangements, cybersecurity risks, regulatory developments, tax and accounting treatment, and disruptions affecting digital asset markets or service providers. Such factors inherently influence period-to-period volatility in reported earnings.
The period-to-period comparisons of our historical results are not necessarily indicative of the results that may be expected in the future. As Nakamoto Inc. continues to execute its strategy of building vertically integrated Bitcoin infrastructure, near-term financial performance will remain sensitive to both market-driven valuation effects and the pace of operational scaling. Management continues to assess liquidity needs in light of pledged collateral, custody arrangements, and evolving regulatory expectations across jurisdictions.