Nakamoto launches Bitcoin derivatives strategy with Bitwise, Kraken

Bitcoin (BTC) treasury firm Nakamoto has launched an actively managed Bitcoin derivatives program, expanding its treasury strategy to include volatility-based income generation and downside risk management.

In a Friday statement, the company said the program has been operating since the first quarter of 2026. It is designed to complement Nakamoto's core Bitcoin asset management strategy by generating recurring income from a defined portion of its holdings. The strategy also seeks to hedge against adverse movements in Bitcoin prices.

Nakamoto expands treasury strategy with yield and risk management

Under the structure, a portion of Nakamoto's Bitcoin is held within Kraken's qualified custody solution and used as collateral for a derivatives strategy managed by Bitwise through a separately managed account. 

"Working with institutional-grade partners like Bitwise and Kraken, we have built a disciplined framework to harvest that premium systematically, at scale, and convert that opportunity into long-term value for shareholders," said Nakamoto's Chief Investment Officer (CIO), Tyler Evans.

The program combines two strategies: one aimed at generating income and the other at protection. On the income side, Nakamoto is writing covered calls and call spreads against a portion of its Bitcoin holdings to capture premiums tied to implied volatility in Bitcoin options markets. 

The approach aims to convert volatility into recurring income, with position sizing and strike selection guided by its risk framework.

Nakamoto's hedging component uses protective puts and put spreads to reduce exposure to downside price risk over defined time horizons. The company noted that premiums earned through the income sleeve may partially fund hedging costs. Proceeds generated under the strategy may also be directed toward additional Bitcoin purchases or other corporate purposes.

"This Program is just one component of a broader effort to identify and execute on opportunities to generate yield on our Bitcoin holdings," Evans added.

Nakamoto stated that Bitcoin posted as collateral for written option positions will remain under its ownership and continue to be included in its disclosed holdings. The company added that protective derivatives established through the program are intended to supplement its core Bitcoin treasury.

The announcement reflects a growing trend among Bitcoin treasury firms to explore yield generation strategies beyond passive accumulation.

Nakamoto said results from the program's first-quarter performance will be disclosed in its upcoming Form 10-Q filing.