Nakamoto Pursues Reverse Stock Split to Avoid Nasdaq Delisting

Bitcoin treasury company Nakamoto is moving ahead with a shareholder-approved 1-for-40 reverse stock split on Friday in an effort to avoid delisting from the Nasdaq Stock Exchange.

The company received a notice from the Nasdaq on Dec. 10, warning that its stock price had fallen below the $1 minimum for 30 consecutive business days, according to an SEC filing. Nakamoto has until June 8 to address the issue and keep its stock above $1 for at least 10 days.

A reverse stock split reduces the number of shares outstanding. In a 1-for-40 split, every 40 shares are combined into one. After completion, Nakamoto’s total common shares will drop from 696.1 million to 17.4 million, the company said Wednesday.

“The reverse stock split is intended to increase the per-share trading price of the company’s common stock to regain compliance with the $1 minimum bid price requirement for continued listing on the Nasdaq Global Market,” it added.

Crypto treasury companies have been in a downturn since 2025, with many companies’ stock prices falling below the value of the crypto on their balance sheets, Standard Chartered reported last September.

Wojciech Kaszycki, chief strategy officer of crypto infrastructure and treasury company BTCS, told Cointelegraph in March that treasury companies will likely start merging and consolidating this year to stay afloat.

Nakamoto’s share price, NAKA, closed 16 cents on Wednesday, down 7.5%, according to Google Finance. It is down more than 99% from May last year, when it traded above $25 shortly after the company unveiled its Bitcoin treasury strategy and merger with health care provider KindlyMD.

Source: Nakamoto

Nakamoto posts $238.8 million net loss in Q1

Nakamoto shareholders approved a reverse split ratio range of 1-for-20 to 1-for-50 at a special meeting on May 8. The shares are expected to undergo the change on Friday, according to Nakamoto.

The company announced its first-quarter financial results on May 14, recording a 500% quarter-over-quarter increase in revenue but a $238.8 million net loss, with more than $102 million attributed to a mark-to-market loss on its 5,058 Bitcoin (BTC) treasury after the cryptocurrency fell 23% during the quarter.

Related: Tether buys SoftBank’s stake in Bitcoin company Twenty One Capital

Most Bitcoin treasury companies, aside from Strategy and Metaplanet, have slowed Bitcoin buying over the past 12 months, while others have started tapping their Bitcoin treasuries to pay off debt. The Genius Group liquidated its entire treasury holdings of 84 Bitcoin in February to help pay debts.

Nakamoto didn’t buy any Bitcoin during the quarter but sold 284 Bitcoin on March 31 to cover operational expenses.

Nakamoto’s current holdings make it the 20th largest Bitcoin treasury company according to BitcoinTreasuries.Net, just behind ProCap Financial, which holds 5,457 Bitcoin. The leading treasury is Michael Saylor’s firm Strategy, with more than 843,000 Bitcoin on its balance sheet.