The Nakamoto Strategy: Seeding Bitcoin Treasury Companies In Every Capital Market

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The Nakamoto strategy is redefining how capital is formed in the Bitcoin era. Rather than treating Bitcoin merely as a passive store of value, Nakamoto leverages it as the foundational asset in a dynamic, globally scalable capital architecture. This approach combines Bitcoin’s monetary properties with public equity markets to create a compounding engine for BTC-denominated wealth.

At its core, the strategy involves seeding and supporting public companies that adopt Bitcoin as their primary treasury reserve—particularly in jurisdictions where direct institutional access to Bitcoin is restricted. By doing so, Nakamoto enables compliant, liquid exposure to Bitcoin through traditional financial channels, effectively bridging the gap between legacy capital markets and the emerging Bitcoin economy.

The Evolution of Treasury Strategy: From Holdings to Ecosystem Building

Bitcoin treasury strategies have evolved beyond simple accumulation. Early adopters like MicroStrategy demonstrated that holding BTC on corporate balance sheets could outperform traditional cash reserves. But Nakamoto takes this further by transforming Bitcoin into an active capital formation tool.

Instead of just accumulating BTC, Nakamoto uses equity markets to amplify exposure. It identifies underserved capital markets, establishes or invests in public companies with Bitcoin treasury policies, and strategically deploys capital—often in the form of equity financing or convertible instruments. These companies then become regulated vehicles for institutional investors seeking compliant BTC exposure.

👉 Discover how public markets are becoming gateways to Bitcoin adoption.

This model has already shown success across multiple geographies:

Backed by over $750 million in committed capital, Nakamoto is scaling this blueprint globally—one exchange, one jurisdiction, one company at a time.

How the Nakamoto Flywheel Drives Value

The power of the strategy lies in its self-reinforcing cycle—what can be called the Nakamoto Flywheel:

  1. Seed a Bitcoin treasury company in a market with limited BTC access.
  2. Deploy capital via equity or structured instruments.
  3. List the company on a public exchange, unlocking liquidity and visibility.
  4. Revalue—as demand grows, the company trades at a premium to its net Bitcoin value (mNAV expansion).
  5. Recycle—appreciated equity is partially sold to acquire more BTC or fund new ventures.
  6. Repeat, compounding BTC holdings without dilution.

This flywheel turns market inefficiencies into long-term Bitcoin accumulation, all while expanding access for institutional capital.

Core Mechanisms Behind the Strategy

mNAV Arbitrage: Capturing Strategic Premiums

One of the key drivers is mNAV (multiple of Net Asset Value) arbitrage. In markets where no compliant Bitcoin exposure exists, the first-mover treasury company often trades at a significant premium to its BTC holdings. This premium reflects scarcity, strategic positioning, and investor demand.

Nakamoto enters early—at or near 1× mNAV—then benefits as public markets re-rate the company upward. The resulting equity appreciation allows Nakamoto to harvest gains and redeploy them into additional BTC or new ventures.

BTC Yield: The True Measure of Performance

Rather than focusing on earnings per share or revenue growth, Nakamoto measures success through BTC Yield—Bitcoin per diluted share. This metric captures whether a company is growing its BTC holdings faster than it issues new shares.

A rising BTC Yield indicates effective capital compounding. It aligns management incentives with long-term value creation in Bitcoin terms, not fiat-based accounting illusions.

Nakamoto also tracks look-through BTC ownership, ensuring every investment decision is evaluated based on how much additional BTC it brings under its indirect control.

The mNAV² Strategy: Compounding Without Dilution

Most treasury companies grow BTC-per-share through repeated equity issuance—diluting existing shareholders. Nakamoto avoids this by using the mNAV² strategy:

This creates a non-dilutive compounding mechanism—turning balance sheet efficiency into a competitive advantage.

Bridging the Institutional Access Gap

Many institutional investors—pension funds, endowments, insurance companies—cannot directly hold Bitcoin due to regulatory, custody, or compliance constraints. However, they can invest in public equities.

Nakamoto solves this asymmetry by creating regulated, exchange-listed vehicles that hold Bitcoin on their balance sheets. These companies act as on-ramps for institutional capital, enabling compliant exposure without requiring direct custody.

👉 See how traditional finance is integrating Bitcoin through regulated vehicles.

Operating Within Regulatory Boundaries: The 40% Rule

A critical constraint shaping Nakamoto’s strategy is the Investment Company Act of 1940, which limits any entity from holding more than 40% of its assets in securities like public stocks.

Since Bitcoin is classified as a commodity—not a security—it does not count toward this threshold. This creates a powerful incentive:

To manage this smoothly, Nakamoto employs innovative instruments like Bitcoin-denominated convertible notes—delaying securities classification while maintaining exposure.

Strategic Instruments: Bitcoin-Convertible Notes

These notes are a cornerstone of future deployments. They offer:

Companies like The Blockchain Group have already used similar structures successfully. As adoption grows, Bitcoin-denominated convertibles could become standard tools for compliant, scalable capital deployment.

Addressing Common Criticisms

FAQ: Frequently Asked Questions

Q: Doesn’t transferring Bitcoin between entities trigger taxes?
A: Nakamoto avoids direct BTC transfers by using equity-based structures like PIPEs and warrants—minimizing taxable events while maintaining exposure.

Q: Are mNAV premiums sustainable, or just hype-driven?
A: While premiums may fluctuate, Nakamoto focuses on BTC-per-share growth—a tangible outcome driven by disciplined capital allocation, not speculation.

Q: Does Nakamoto control the companies it supports?
A: No. Nakamoto ensures strategic alignment through board representation and governance rights but does not manage day-to-day operations.

Q: What happens if mNAV compresses during market downturns?
A: Even if multiples contract, the underlying BTC remains on the balance sheet. Intrinsic value is preserved, and long-term compounding continues.

Q: How does Nakamoto capture value without dividends or exits?
A: Value is captured through long-term equity appreciation, pre-IPO warrants, and reinvestment of gains into more BTC—aligning with its Bitcoin-native thesis.

Q: Isn’t this just private equity with a Bitcoin twist?
A: Unlike private equity, Nakamoto operates in public markets with full transparency, real-time price discovery, and liquidity—making it faster, more scalable, and better aligned with decentralized principles.

Conclusion: Building the Infrastructure for Bitcoin-Native Capital Markets

The Nakamoto strategy is more than an investment thesis—it’s a structural innovation in capital formation. By seeding Bitcoin treasury companies in every major capital market, Nakamoto is creating a global network of compliant, liquid entry points for institutional participation in the Bitcoin economy.

With proven models in Tokyo, London, and Paris—and over $750 million in backing—the strategy is no longer theoretical. It’s being executed at scale.

As Bitcoin becomes the de facto hurdle rate for global capital, strategies that compound returns in Bitcoin terms will gain increasing relevance. Nakamoto’s model doesn’t just preserve value—it actively grows it, cycle after cycle, market after market.

👉 Explore how the next wave of financial innovation is being built on Bitcoin.

This isn’t just about treasury management. It’s about building the infrastructure for a new financial system—one where Bitcoin is at the center of global capital allocation.