Nakamoto to implement 1-for-40 reverse split to meet Nasdaq $1
Nakamoto will execute a 1-for-40 reverse stock split, cutting shares from 696.1 million to 17.4 million effective May 22 to meet Nasdaq’s $1 minimum after a roughly 99.5% drop.
Nakamoto announced it will carry out a 1-for-40 reverse stock split, reducing outstanding common shares from 696.1 million to 17.4 million on May 22. The company said the consolidation is intended to restore compliance with Nasdaq’s $1 minimum bid-price requirement after the stock fell about 99.5% from its 52-week high.
Shareholders approved a consolidation range at a special meeting on May 8, authorizing a ratio of no less than 1-for-20 and no more than 1-for-50. Company management selected the 1-for-40 ratio within that approved range and set the effective date after the vote.
Nakamoto’s shares have reached multiple record lows in recent sessions. The stock fell to a new all-time low after the company reported roughly $239 million in first-quarter losses tied mainly to a decline in Bitcoin’s price. On Wednesday the shares dropped about 7.5% to trade near $0.158, hit an intraday low of $0.145 and later rose about 2.6% in after-hours trading. The shares remain more than 99.5% below their 52-week high of $34.77.
After the split, the company’s total common stock will be reduced to 17.4 million shares from 696.1 million. The consolidation will not change the company’s underlying business or the proportionate ownership of shareholders, and it is aimed at increasing the per-share trading price to meet Nasdaq’s threshold.
Nakamoto is a publicly traded Bitcoin treasury firm that holds more than 5,000 Bitcoin, with those holdings valued at over $388 million based on recent prices. The company sold portions of its primary treasury vehicle in each of the last two quarters, disposing of roughly $20 million worth of BTC in the fourth quarter and about $22 million in the first quarter, according to its earnings report.
Bitcoin was trading around $77,927 at the time of the announcement, up about 1.6% over 24 hours and modestly higher over the past month, but still more than 38% below its October all-time high of $126,080.
The reverse split and the recent asset sales follow the company’s Q1 results and the shareholder approval of the consolidation range in early May. Management scheduled the specific 1-for-40 ratio to take effect on May 22.
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