Nakamoto, a Bitcoin treasury company, is implementing a 1-for-40 reverse stock split to avoid delisting from the Nasdaq exchange. The company received a warning from Nasdaq in December because its share price remained below the $1 minimum requirement for 30 consecutive business days. According to SEC filings, the company must maintain a share price above $1 for at least 10 consecutive days by June 8. This is reported by Cointelegraph.com .
As a result of this process, the number of Nakamoto's outstanding shares will decrease from 696.1 million to 17.4 million. According to the company's statement, the main goal of the reverse split is to comply with Nasdaq Global Market listing requirements by artificially increasing the price of each share. According to Google Finance, NAKA shares closed at $0.16 on Wednesday, representing a decline of more than 99% from last year's peak of $25.
Crypto treasury companies have been experiencing a crisis since 2025. According to a Standard Chartered report, the market value of many companies has fallen below the value of the cryptocurrencies on their balance sheets. Wojciech Kaszycki, Chief Strategy Officer at BTCS, predicts that industry players will be forced to pursue mergers and consolidation to survive this year.
Although Nakamoto increased its revenue by 500% in the first quarter, it ultimately reported a net loss of $238.8 million. $102 million of this loss is attributed to a 23% decline in the value of the 5,058 Bitcoins on the company's balance sheet during the quarter. The company was forced to sell 284 Bitcoins at the end of March to cover operating expenses.
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