Nakamoto has launched an actively managed bitcoin derivatives program with the aim of generating income from market volatility while minimizing downside exposure, according to the company. statement Released Friday.
The program, which has been in operation since the first quarter of 2026, is designed to complement Nakamoto The basic strategy for holding Bitcoin as a treasury asset. A portion of the company’s Bitcoin holdings is used as collateral in a derivatives strategy managed by Bitwise Asset Management through a separately managed account. Custody services are provided by the Kraken Foundation.
The initiative focuses on two main components: the income envelope and the hedging envelope. The income wrapper involves writing covered calls and call spreads in exchange for a specified share of Nakamoto’s Bitcoin holdings. This approach seeks to capture premiums from options markets, where the implied volatility in Bitcoin pricing often exceeds the realized volatility.
Cover hedging focuses on buying protective points and putting spreads. These positions are designed to offset potential losses during periods of falling prices, providing a buffer against negative market movements. According to the company, premiums generated from the income wrapper may help fund the cost of these protection functions.
Bitcoin volatility as an opportunity
Tyler Evans, chief investment officer at Nakamoto and UTXO Management, said the company views Bitcoin’s implied volatility as a consistent source of opportunity. He described the program as a systematic effort to convert this volatility into value for shareholders while maintaining exposure to the underlying assets.
Bitcoin used as collateral within the program remains under Nakamoto’s ownership and continues to be counted among his reported holdings. The company emphasized that the derivatives positions complement its immediate exposure to Bitcoin rather than replace it.
Premiums collected through the program may be received in either Bitcoin or US dollars, depending on the structure of each trade. These proceeds can be allocated to cover hedging costs, additional Bitcoin purchases, or general company needs in line with the capital allocation strategy, Nakamoto said.
The program operates under a uniform investment mandate that defines notional exposure limits, eligible instruments, counterparties, and custody requirements. It also represents the trade-off between income generation and the potential limits of upside participation due to call option positions.
Nakamoto framed the strategy as part of a broader effort to generate returns from his Bitcoin treasury while maintaining long-term accumulation goals. The company said the hedging component aims to support balance sheet stability and reduce the risk of forced sales of assets during periods of market stress.
Performance details from the program’s first quarter of operation are expected to be revealed in Nakamoto’s upcoming Form 10-Q.
Bitcoin Magazine is published by BTC Inc., a subsidiary of Nakamoto Inc. (NASDAQ:NAKA)
