Nakamoto Inc. has introduced a new actively managed Bitcoin derivatives program designed to capitalize on market volatility while simultaneously minimizing downside exposure. According to a company statement, this initiative has been operational since the first quarter of 2026 and is intended to complement Nakamoto’s core strategy of holding Bitcoin as a treasury asset.
The program employs a portion of Nakamoto’s Bitcoin holdings as collateral for a derivatives strategy that is managed by Bitwise Asset Management through a separately managed account, with custody services provided by Kraken Institutional. This comprehensive approach is structured around two key components: an income sleeve and a hedging sleeve.
The income sleeve utilizes strategies such as writing covered calls and call spreads against a specific portion of Nakamoto’s Bitcoin holdings. This technique aims to leverage premiums from options markets, particularly taking advantage of instances where the implied volatility of Bitcoin pricing often eclipses the realized volatility.
Conversely, the hedging sleeve is tailored to purchase protective puts and put spreads that serve as insurance against potential losses during downturns in Bitcoin’s price. This mechanism is designed to mitigate adverse market impacts, effectively providing a buffer for the company’s investments. Significantly, the amounts generated from the income sleeve’s premiums are expected to help fund the costs of these protective positions.
Tyler Evans, chief investment officer of Nakamoto and UTXO Management, indicated that the firm sees Bitcoin’s implied volatility as a reliable source of opportunity. He elaborated on the program as a calculated initiative aimed at transforming this volatility into shareholder value while retaining exposure to the underlying asset. Notably, the Bitcoin collateral utilized within this program remains under Nakamoto’s ownership, continuing to contribute to the company’s reported holdings.
The company clarified that the derivatives positions are intended to enhance its spot Bitcoin exposure rather than replace it. Premiums generated through the program can be received in either Bitcoin or U.S. dollars, depending on individual trade structures. Nakamoto plans to allocate these proceeds for various uses, including offsetting hedging costs, facilitating additional Bitcoin purchases, or fulfilling corporate needs as part of its capital allocation strategy.
Adding to its rigor, the program operates under a unified investment mandate that delineates limits on notional exposure, permissible instruments, counterparties, and custody practices. This carefully established framework also considers the necessary trade-offs between generating income and potential constraints on upside participation due to the nature of call option positions.
In framing this initiative, Nakamoto characterized the strategy as part of a larger objective to generate yield from its Bitcoin treasury while pursuing long-term accumulation goals. The firm noted that the hedging component is pivotal for ensuring balance sheet stability and curtailing the risks associated with forced asset sales during times of market turbulence.
Performance metrics from the inaugural quarter of this program are anticipated to be revealed in Nakamoto’s forthcoming Form 10-Q filing, generating additional interest and scrutiny from investors and industry observers alike.
