Written by Zoltan Vardai, Staff Writer. Reviewed by Bryan O'Shea, Staff Editor. Nakamoto taps Bitwise and Kraken for Bitcoin options strategy to hedge risk
Nakamoto launched a Bitcoin derivatives program with Bitwise and Kraken, aiming to generate options premiums and hedge part of its BTC treasury exposure.
Nasdaq-listed Bitcoin treasury company Nakamoto announced on Friday an actively managed Bitcoin derivatives program designed to generate recurring income from volatility while hedging part of its downside exposure.
Nakamoto said the program has been in place since the first quarter of 2026 and uses a portion of the company’s Bitcoin holdings as collateral for a derivatives strategy managed by Bitwise Asset Management in a separately managed account.
Under the arrangement, a portion of the company’s Bitcoin is held in Kraken’s qualified custody solution and used as collateral for a derivatives strategy managed by Bitwise Asset Management in a separately managed account.
The move highlights how Bitcoin treasury firms are looking for new ways to manage balance sheet risk as prolonged price weakness puts pressure on companies holding large crypto reserves.
“Bitcoin's implied volatility is one of the most persistently mispriced assets in capital markets,” wrote Tyler Evans, chief investment officer of Nakamoto and UTXO Management, adding that the new framework seeks to “harvest that premium systematically, at scale, and convert that opportunity into long-term value for shareholders.”
Bitcoin is down around 38% from its all-time high of $126,198 set in October 2025 and traded at $78,151 at the time of writing, TradingView data shows.
BTC/USD, 1-year chart. Source: Cointelegraph/TradingView
Nakamoto's share price traded at $0.22 at the time of writing, down around 4.5% since the market open, with the company's price down by around 46% year-to-date, according to Yahoo Finance.
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The new derivatives program adds another tool for treasury companies seeking to avoid outright sales while still generating cash flow or reducing downside risk during periods of market volatility.
Nakamoto is the largest Bitcoin treasury company to publicly disclose selling part of its holdings this year. The company announced a sale of 284 Bitcoin (worth about $20 million at the time) in a March 30 filing with the US Securities and Exchange Commission.
Nakamoto is the 20th-largest Bitcoin treasury firm and currently holds 5,098 BTC worth about $395 million, according to Bitcointreasuries data.
Nakamoto INC, Bitcoin holdings over time, 1-year chart. Source: Bitcointreasuries.net
Treasury company Genius Group announced the liquidation of its entire treasury holdings of 84 BTC for about $5.7 million in February, which it used to repay an $8.5 million debt obligation, according to an SEC filing.
Days later, Bitcoin treasury management company Empery Digital said it had sold 357.7 BTC at an average price of $66,632, generating about $24.7 million in gross proceeds.
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