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- Nakamoto uses Bitcoin options to generate steady income and reduce downside risk.
- Covered calls and protective puts balance yield generation with capital safety.
- Bitwise manages trades while Kraken secures Bitcoin collateral for positions.
Bitcoin became the focus of a new derivatives strategy launched by Nakamoto Inc. in early 2026. The company outlined a structured approach that combines income generation with downside protection using its existing Bitcoin holdings.
As per the official announcement, Nakamoto said the program is built around a portion of its Bitcoin reserves. The structure supports its broader treasury management framework. The firm confirmed that the strategy relies on institutional partners for execution and custody.
Bitwise Asset Management manages the trading strategy under a defined mandate. Kraken provides custody for the collateral assets. The company stated that this setup ensures oversight and operational clarity.
Bitcoin Strategy Aligns Yield With Risk Control
Moreover, the first component focuses on income generation from Bitcoin options. Nakamoto writes covered calls and call spreads on its holdings. These trades allow the firm to collect premiums by selling upside exposure at fixed levels.
The second part is designed to reduce risk. Nakamoto uses protective puts and put spreads to limit losses during price declines. The company said this approach helps manage exposure during volatile periods.
In some cases, income generated from options is used to offset hedging costs. This creates a balance between revenue and protection. The firm stated that the structure is designed to preserve capital while generating yield.
However, Bitwise holds some Bitcoin in custody as collateral for derivatives trades. The assets are still accounted for by Nakamoto. They are still counted as Bitcoin assets.
The strategy is managed in a separate account. Bitwise is responsible for trade generation, position sizing, and risk limits. This provides for disciplined trading within parameters, Bitwise said.
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The strategy is applied to the Bitcoin options market. Nakamoto aims to exploit implied volatility in order to secure consistent premiums. The company explained that mispricing of options presents opportunities for consistent returns.
Nakamoto Growth Aligns With Bitcoin Hedging Model
It also includes hedging to mitigate against drops. The firm said this can help avoid liquidity drains in market downturns. The structure is designed to minimize the effects of price volatility.
The move follows Nakamoto’s earlier expansion across the Bitcoin ecosystem. The company, known as KindlyMD, signed an agreement to buy BTC Inc. and UTXO Management. It is worth an estimated $107.3 million.
The deal will see the issuance of 363.6 million shares. It is scheduled to be completed in the first quarter of 2026. The acquisitions boost its presence in the Bitcoin industry, said Nakamoto
However, BTC Inc. operates Bitcoin Magazine and organizes The Bitcoin Conference. It also promotes business adoption. UTXO Management provides investment advice on Bitcoin.
Nakamoto explained that premiums from derivatives transactions can be paid in Bitcoin or US dollars. This can be applied to hedging costs or further investments or business expenses. The firm confirmed allocations vary with deals.
The company shared that the derivatives strategy is part of the treasury strategy. It seeks to manage Bitcoin rather than sit on stocks. Results from initial transactions will be reported in future filings.
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