Nakamoto Inc. (NASDAQ: NAKA), a Bitcoin treasury company, announced on July 2 the launch of an actively managed Bitcoin derivatives program. The initiative aims to generate income from market volatility while reducing downside risk, complementing the company's core strategy of holding Bitcoin as a long-term treasury asset.
The program has been operational since the first quarter of 2026. Nakamoto uses a portion of its Bitcoin holdings as collateral for a derivatives strategy executed by Bitwise Asset Management through a separately managed account. Custody services are provided by Kraken Institutional. All Bitcoin used as collateral remains under Nakamoto's ownership and continues to be counted toward its reported holdings.
The plan consists of two main components: an income sleeve and a hedging sleeve. The income sleeve involves writing covered calls and call spreads against a defined share of Nakamoto's Bitcoin holdings. This approach seeks to capture premiums from options markets, where implied volatility in Bitcoin pricing often exceeds realized volatility. The hedging sleeve focuses on purchasing protective puts and put spreads. These positions are designed to offset potential losses during price declines, providing a buffer against adverse market moves. According to the company, premiums generated from the income sleeve may help fund the cost of these protective positions.
Bitcoin's Volatility as Opportunity
Tyler Evans, Chief Investment Officer of both Nakamoto and UTXO Management, stated that the firm views Bitcoin's implied volatility as a consistent source of opportunity. He described the program as a structured effort to convert that volatility into shareholder value while maintaining exposure to the underlying asset. The program operates under a unified investment mandate that defines limits on notional exposure, eligible instruments, counterparties, and custody requirements. It also accounts for the tradeoff between income generation and potential limits on upside participation due to call option positions.
Premiums collected through the program may be received in either Bitcoin or U.S. dollars, depending on the structure of each trade. Nakamoto said these proceeds can be allocated toward hedging costs, additional Bitcoin purchases, or general corporate needs in line with its capital allocation strategy. The company emphasized that derivatives positions supplement its spot Bitcoin exposure rather than replace it, and its long-term accumulation goals remain unchanged.
From a risk management perspective, the hedging component is intended to support balance sheet stability and reduce the risk of forced asset sales during periods of market stress. Nakamoto framed the strategy as part of a broader effort to generate yield from its Bitcoin treasury while maintaining long-term accumulation goals. The company believes this structured approach allows it to optimize returns and manage risk without deviating from its core conviction in Bitcoin's long-term value.
Performance details from the program's first quarter of operation are expected to be disclosed in Nakamoto's upcoming Form 10-Q filing. Market analysts view this as another sign of growing institutional adoption of Bitcoin derivatives tools, particularly options-based strategies to enhance yield and manage volatility from large treasury holdings.
Bitcoin Magazine is published by BTC Inc., a subsidiary of Nakamoto Inc. (NASDAQ: NAKA).