Nakamoto to execute 1-for-40 reverse split Friday

Nakamoto will carry out a shareholder-approved 1-for-40 reverse stock split on Friday, reducing outstanding common shares from 696.1 million to 17.4 million to raise its per-share trading price above Nasdaq’s $1 minimum bid requirement.

Nasdaq notified the company on Dec. 10 that the stock had traded below $1 for 30 consecutive business days. Nakamoto has until June 8 to regain compliance by keeping the share price above $1 for at least 10 trading days. In an SEC filing, the company wrote that the reverse split is intended to increase the per-share trading price to regain compliance with the Nasdaq Global Market minimum bid price requirement.

Shareholders approved a reverse-split range of 1-for-20 to 1-for-50 at a special meeting on May 8. The board selected the 1-for-40 ratio and set the change to take effect Friday. After the consolidation, the company’s total common shares will fall to 17.4 million.

Nakamoto reported first-quarter results on May 14 showing a 500% quarter-over-quarter rise in revenue and a net loss of $238.8 million. More than $102 million of the loss was recorded as a mark-to-market impairment on its 5,058 Bitcoin treasury after the cryptocurrency fell about 23% during the quarter. The company did not buy any Bitcoin in the period and sold 284 BTC on March 31 to cover operating expenses.

The company’s stock, trading under the ticker NAKA, closed at $0.16 on Wednesday, down 7.5% for the day and more than 99% below levels above $25 in May of last year when Nakamoto announced its Bitcoin treasury strategy and a merger with a health care provider. That decline prompted Nasdaq’s compliance notice.

Public companies that hold crypto treasuries have faced pressure since 2025. Several firms have slowed or paused new Bitcoin purchases, and some have sold holdings to reduce debt or pay expenses. Nakamoto’s 5,058 BTC places it roughly 20th among known public Bitcoin treasuries; the largest public treasury holds more than 800,000 BTC.

The reverse split is intended to address the immediate Nasdaq requirement. Nakamoto must sustain the higher per-share price for the required period to remain listed on the Nasdaq Global Market.