Nakamoto, a Bitcoin treasury firm, has approved a 1-for-40 reverse stock split to reduce its outstanding shares and raise its per-share price. This measure will cut the total stocks from approximately 696.1 million to 17.4 million, shrinking the circulating supply by roughly 97.5%, starting from the 22nd of May.
The firm’s move aims to address its stock’s continued drop below the Nasdaq minimum bid price of $1. NAKA shares fell under this threshold last October and have traded below a dollar for around seven months. At press time, the stock price hovered near 15 cents, marking a 99% decline from a $34 peak recorded in mid-2025.
The reverse split is designed to help Nakamoto maintain compliance with Nasdaq’s listing standards and prevent delisting. Nasdaq requires listed stocks to maintain a minimum bid price, and falling below this can trigger removal from the exchange. With the reverse split, Nakamoto hopes to restore investor confidence and stabilize its stock’s trading range.
Despite the stock’s struggle, Nakamoto’s broader business remained active during a challenging first quarter of 2026, posting a significant net loss of $238.8 million. This loss partly reflected the wider crypto market downturn that diminished the value of its Bitcoin holdings. Nevertheless, the CEO expressed optimism about the firm’s strategic direction, emphasizing plans to scale operations and grow revenue streams throughout the year.
During Q1, Nakamoto also sold approximately 300 BTC, trimming its total Bitcoin reserves to 5,058 BTC, ranking it 20th among global public companies holding BTC. This sale coincided with a general increase in Bitcoin accumulation by public firms in the past 30 days, driven in part by high-profile strategies.
Following the announcement of the reverse stock split, NAKA’s stock price declined further by 7.5%, reflecting investor uncertainty about whether the restructuring will achieve its intended effect. The company now faces the critical task of regaining Nasdaq listing compliance while navigating ongoing crypto market volatility.