Key Takeaways
Nakamoto Inc. will consolidate its shares in a 1-for-40 reverse stock split, an action aimed at lifting the company’s stock price above Nasdaq’s $1 minimum bid requirement after a more than 99% price collapse.
“The reverse split is tied to Nasdaq’s minimum bid price requirement,” the company stated in a preliminary proxy filing, noting it had until June 8, 2026, to regain compliance after receiving a deficiency notice in December 2025.
Shares of NAKA recently traded around $0.166, down more than 99.5% from a 52-week high of $34.77. The split will reduce the number of outstanding shares from approximately 690 million to about 17.3 million, based on the March 31 record date, according to company filings.
While the split may solve the immediate delisting threat, it leaves the company’s authorized share count unchanged at 10 billion, creating a massive overhang. The proxy filing acknowledged the risk that “the issuance of additional shares would be dilutive to our existing stockholders and may cause a decline in the trading price of our Common Stock.”
The move follows a transformational period for the company, which recently pivoted to become a "Bitcoin operating company," according to CEO David Bailey. The firm reported a net loss of nearly $239 million in the first quarter, driven by declines in Bitcoin prices.
As part of its new strategy, Nakamoto is actively managing its treasury, which includes over 5,000 BTC valued at more than $400 million. The company sold 284 BTC (worth approximately $22 million) in the first quarter to support working capital requirements as Bitcoin trades above $80,000.
This article is for informational purposes only and does not constitute investment advice.
