Nakamoto posts $239M Q1 net loss despite 500% revenue surge

Nasdaq-listed Nakamoto (NAKA), a company strategically accumulating Bitcoin, saw its first-quarter revenue increase by 500% from the previous quarter but still recorded a net loss of $238.8 million, Cointelegraph reported. The revenue surge was driven by the acquisition of BTC Inc, the operator of Bitcoin Magazine and the Bitcoin Conference, and investment platform UTXO Management in February. The net loss was largely composed of a $107.7 million accounting loss on pre-acquisition option contracts and a $102.5 million mark-to-market loss on its 5,058 BTC holdings. CEO David Bailey described the first quarter as a turning point, stating that the company will focus on business expansion, revenue diversification, and enhancing shareholder value through capital allocation for the remainder of the year. Nakamoto did not purchase additional BTC during the quarter and sold 284 BTC to cover operating expenses. The company's stock price is down more than 99.2% from its all-time high. Meanwhile, Nakamoto plans to completely divest its healthcare business by the end of the second quarter to concentrate on its Bitcoin-related ventures.