Nakamoto Unveils Explosive Bitcoin Options Play With Bitwise and Kraken

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Nakamoto rolls out actively managed <a href="https://bbg-news.com/btc-usd/">Bitcoin</a> options program with Bitwise and Kraken

Nakamoto Inc. is using a strategy with Bitwise and Kraken to generate income from its Bitcoin holdings and limit potential losses. They’re doing this by selling covered calls and buying protective puts, essentially capitalizing on market fluctuations.

Summary

  • Nasdaq-listed Nakamoto Inc. has detailed an actively managed Bitcoin derivatives program designed to turn BTC’s volatility into recurring income while hedging part of its downside risk.
  • Bitwise Asset Management will manage a separately managed account using Nakamoto’s Bitcoin, custodied by Kraken Institutional, to run covered calls, call spreads, protective puts, and put spreads.
  • Premiums generated can be used to pay for hedges, increase Bitcoin holdings, or fund corporate expenses, with results set to appear in Nakamoto’s Q1 2026 Form 10‑Q.

Nakamoto Inc. (NASDAQ: NAKA) has revealed details about a Bitcoin trading program it started in early 2026. This program is designed to work alongside the company’s existing strategy of holding Bitcoin for the long term. According to Nakamoto Inc., the program aims to earn income from Bitcoin price fluctuations while also reducing potential losses if the price of Bitcoin falls.

This program involves holding a portion of Satoshi Nakamoto’s Bitcoin with Kraken for secure storage. That Bitcoin is then used as collateral in an investment account managed by Bitwise Asset Management. Together, Nakamoto and Bitwise invest in Bitcoin-related financial products, like derivatives, within this account. They’ve established rules to limit the overall risk, controlling how much they invest and which companies they do business with.

The system operates with two main components. To generate income, Nakamoto sells Bitcoin options, specifically covered calls and call spreads, using a portion of its Bitcoin. The amount sold, the price points, and the duration are all determined by the company’s risk management policies. To protect against price drops, Nakamoto also buys protective puts and put spreads, again using a portion of its Bitcoin holdings. The cost of these protective options is often offset by the income generated from selling the calls and call spreads.

I recently saw a post on X from Nakamoto explaining their Bitcoin trading strategy. They believe Bitcoin’s volatility is consistently undervalued, and their program aims to profit from that while also protecting our treasury from potential losses. We can receive premiums for this strategy in either Bitcoin or U.S. dollars, and we have the flexibility to reinvest those earnings back into our Bitcoin holdings, use them to cover operating expenses like interest, or simply keep them as working capital. We’ll be sharing the performance results for the first quarter of 2026 in our next quarterly report.

This move is significant for the crypto market for a few reasons. Firstly, it demonstrates a publicly traded Bitcoin company using a common strategy – covered calls combined with put options – traditionally employed by commodity producers and gold ETFs, but applying it directly to their Bitcoin holdings through regulated and secure management. Secondly, it solidifies Bitwise’s position as a key link between established financial derivative systems and direct Bitcoin ownership, as more companies explore adding Bitcoin to their assets. Lastly, it provides another real-world example of how companies can treat Bitcoin not just as a long-term store of value, but as an asset that can generate income – offering cash flow and protection against price drops, although potential gains are limited on the portion covered by the strategy.

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2026-04-24 21:05