UTXO Management, a subsidiary of Nakamoto Inc. (NASDAQ: NAKA), announced the formation of UTXO Preferred Income Strategies LP, a Delaware limited partnership structured to provide access to income from preferred digital credit securities.
The fund introduces a dual-class structure designed to serve different allocation objectives within a single vehicle.
The structure includes a senior income class and a total return class. The senior income class aims for a fixed annual coupon paid monthly as a return on capital drawn from preferred dividend streams, according to a company release.
Awards flow to this class first, before fees and junior awards. The structure seeks to deliver returns over short-term US Treasuries, supported by a junior equity cushion. This class carries no administration or performance fees.
The Total Return Class aims for returns through residual income after senior distributions. The strategy includes disciplined leverage, relative value positioning across the preferred digital credit stack and participation in new issuance. This class absorbs initial losses and captures upside bound for spread compression and income growth.
The fund’s initial portfolio is expected to include digital credit instruments such as the Strategy Variable Rate Perpetual Stretch Preferred Security (STRC). These instruments are part of a growing segment of capital markets that blend the features of fixed income with exposure to digital assets.
Chief Investment Officer Tyler Evans said the digital credit market has reached a stage of development that supports structured products, although access remains limited across institutional channels.
“We designed our first structured credit product, UTXO Preferred Income Strategies LP, to give allocators access to these dividend-paying securities with the capital structure enhancements, institutional servicing and operational transparency they require,” Evans said.
UTXO’s expansion into credit
Since 2019, UTXO Management and its affiliates have launched and managed numerous investment vehicles across the Bitcoin ecosystem. These include the Bitcoin Ecosystem Fund, which focuses on venture investments, and 210k Capital, LP, a hedge fund strategy centered on Bitcoin and related instruments. The launch of UTXO Preferred Income Strategies LP marks the firm’s entry into structured credit, expanding its platform into income-oriented strategies.
UTXO Management acts as a Bitcoin-native asset manager across public and private markets. The firm allocates capital across liquid securities, venture investments and strategic partnerships tied to Bitcoin infrastructure and adoption. Nakamoto Inc., its parent company, owns and operates a portfolio of Bitcoin-native companies.
The Fund will be offered to accredited investors who also meet the definition of qualified purchasers under applicable securities laws. Interests will be sold through private placements and will not be registered under the Securities Act of 1933. Investment decisions must be based on the fund’s offering documents, which contain full details of terms, risks and structure.
The strategy entails a high degree of risk. Digital credit securities face regulatory uncertainty, liquidity constraints and valuation challenges. The Fund may use leverage, which may increase losses. The dual-class structure depends on the performance of the underlying assets and the adequacy of the junior equity layer to protect senior distributions.
No capital has been deployed under the strategy at the time of publication. Measures of returns and returns represent internal measures based on modeled scenarios and do not constitute forecasts or guarantees. Actual results may vary based on market conditions, issuer credit quality and broader economic factors.
Disclaimer: Bitcoin Magazine is published by BTC Inc., a subsidiary of Nakamoto Inc. UTXO Management is also a subsidiary of Nakamoto Inc. (NASDAQ: NAKA)