Nakamoto shares fall 6% premarket after Q3 revenue turns negative
A $5.8 million loss on Bitcoin options pushed operating revenue below zero, and higher Bitcoin prices lifted net income to $85.5 million.
Bitcoin treasury firm Nakamoto's premarket stock price fell 6.5% on Friday following the release of its third-quarter results. The company's operating revenue turned negative due to substantial losses on Bitcoin options, which exceeded $5.8 million. This loss pushed Nakamoto's total operating revenue to a negative $1.9 million for the quarter, as reported in the company's filing after the market closed on Thursday.
Despite the revenue setback, Nakamoto managed to generate a significant $85.5 million in net income, bolstered by a $110.4 million gain from revaluing its digital assets, primarily Bitcoin. The adjusted operating loss for the quarter was recorded at $15.8 million, excluding the $110.4 million gain. At the time of reporting, Nakamoto's shares were trading at $5.40 each, marking a dramatic 62% decline year to date.
The company disclosed a holding of 4,283 Bitcoin worth $357.9 million as of September 30, a reduction from 4,467 Bitcoin at the end of June. Nakamoto's strategy of hedging Bitcoin options risk involved partnering with Bitwise and Kraken.
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