Key Takeaways
Bitcoin treasury company Nakamoto sold 284 BTC on March 31 to cover operational costs, a move detailed in its first-quarter financial results published May 14 that reflects growing pressure on the corporate treasury strategy.
The sale was disclosed in the company's Q1 report, which recorded a 500% quarter-over-quarter revenue increase but also a staggering $238.8 million net loss. "The company sold 284 Bitcoin on March 31 to cover operational expenses," the filing stated, confirming the use of treasury assets for liquidity.
More than $102 million of the firm's net loss was attributed to a mark-to-market loss on its 5,058 Bitcoin treasury, after the cryptocurrency’s price fell 23% during the quarter. The sale leaves Nakamoto as the 20th largest public holder of Bitcoin, according to BitcoinTreasuries.Net data.
The decision to sell reserves highlights a divergence in strategy among companies holding Bitcoin. While major players like Michael Saylor’s Strategy continue to add to their holdings of over 843,000 BTC, smaller firms are feeling the strain of market volatility, forcing them to tap into reserves to fund operations.
Nakamoto’s sale is part of a broader trend where most corporate Bitcoin treasuries, aside from Strategy and Metaplanet, have slowed their purchasing over the past year. Some, like The Genius Group, have gone further by liquidating entire holdings to service debt. The Genius Group sold its 84 Bitcoin in February for this purpose.
In response to its financial position and to prevent further stock declines, Nakamoto shareholders approved a reverse stock split ratio between 1-for-20 and 1-for-50 at a special meeting on May 8. The company’s current holdings place it just behind ProCap Financial, which holds 5,457 BTC.
This article is for informational purposes only and does not constitute investment advice.
