Nakamoto (NASDAQ: $NAKA), a Bitcoin (CRYPTO: $BTC) treasury company, reported negative operating revenue of $1.9 million for the third quarter after a $5.8 million loss on Bitcoin derivatives wiped out revenue from other businesses.

The company generated $3.9 million from its operating businesses in the three months ended September 30, but losses on derivative positions pushed total operating revenue below zero. Analysts had expected approximately $17.4 million in revenue, according to estimates compiled by Yahoo Finance.

The derivative losses came as Bitcoin rose during the quarter, climbing from $58,532 on June 30 to $83,565 at the end of September. Nakamoto said around $3 million of the losses came from protective strategies designed to limit downside exposure, while another $2.7 million largely reflected call options it had sold.

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Despite the revenue shortfall, Nakamoto reported $85.5 million in net income, or $4.07 per diluted share. A $110.4 million gain from changes in the fair value of its digital asset holdings accounted for most of the profit.

The company also reported an adjusted operating loss of $15.8 million, a measure that excludes changes in the value of its digital assets but includes derivative revenue.

Nakamoto held 4,283 Bitcoin worth approximately $357.9 million at the end of September, down from 4,467 BTC three months earlier. Of those holdings, 3,030 BTC were pledged as collateral against debt.

The company also extended the maturity of $60 million of its $165 million loan facility with Kraken from December 2026 to December 2027, leaving no scheduled principal repayments for the remainder of this year.

Nakamoto shares dropped to $5.79, down 7.36%, on Thursday. The company's shares are down around 65% year-to-date.