Bitcoin company Nakamoto saw a 500% quarter-on-quarter increase in Q1 revenue after completing two key strategic acquisitions in February aimed at expanding its footprint across the Bitcoin ecosystem.
Despite recording a $238.8 million net loss, Nakamoto CEO David Bailey said Wednesday that Q1 “marked a transformational period” for the company as it closed the acquisitions of Bitcoin-focused news outlet BTC Inc. and Bitcoin-focused investment platform UTXO Management.
More than $1.1 million of Nakamoto’s revenue came from its new Bitcoin treasury and derivatives strategy, $800,000 from its media business, $500,000 from healthcare operations and $200,000 from asset management services.
Source: Nakamoto
Nakamoto attributed the bulk of its Q1 net loss to a $107.7 million non-cash reduction linked to a pre-acquisition option and a $102.5 million mark-to-market loss on its 5,058 Bitcoin (BTC) treasury as the cryptocurrency fell 23% during the quarter.
The Bitcoin treasury industry has faced pressure over the past year, with Bitcoin down 37% from its all-time high, causing some analysts to cast doubt on the sustainability of buy-and-hold strategies.
Most Bitcoin treasuries outside of Strategy and Metaplanet have slowed Bitcoin buying over the last 12 months, while others have eaten into their Bitcoin treasury to pay off debt.
Nakamoto has been one of the hardest-hit Bitcoin treasuries during this downturn, with company shares down over 99.2% from its all-time high.
The company didn’t buy any Bitcoin during the quarter, but sold 284 Bitcoin on March 31 to cover operational expenses.
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Nakamoto (NAKA) rose 2.7% to $0.18 in after-hours trading after Nakamoto posted its results.
Nakamoto expands from Bitcoin treasury company
Nakamoto said BTC Inc. and UTXO Management would be two of the “foundational businesses” setting the company up for long-term growth in the Bitcoin ecosystem.
The Bitcoin company said that its sixfold revenue increase came despite only a partial quarter of contribution from these businesses, as deals were…
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