Bitcoin treasury firm, Nakamoto, will move forward with a 1-for-40 reverse stock split plan. As such, for every 40 stocks of NAKA, only 1 stock will be issued from the 22nd of May.
The plan would effectively shrink NAKA’s stock supply from 696.1 million to 17.4 million – A 97.5% shrink in circulating supply.
In a statement, the firm said the move will boost the share price to help avoid being delisted from the Nasdaq exchange.
The reverse stock split is intended to increase the per share trading price of the Company’s common stock to regain compliance with the $1.00 minimum bid price requirement for continued listing on the Nasdaq Global Market.
A spot check on the price charts showed that NAKA’s price fell below $1 last October. Since then, it has remained below a dollar for about seven months now. As of press time, the stock traded at 15 cents, translating to a 99% crash from a $34 peak in mid-2025.
Nakamoto navigating crypto winter
Like most Bitcoin treasuries and crypto firms, Q1 2026 was tough for the firm. Nakamoto posted a net loss of $238.8 million. Half of the losses were linked to the broader market drawdown that devalued its BTC holdings.
Even so, David Bailey, the CEO of Nakamoto, remained bullish for the rest of 2026 and noted,
Our focus for the remainder of 2026 is execution — scaling our operating businesses, expanding revenue opportunities, and continuing to build durable shareholder value through disciplined capital allocation and long-term conviction in Bitcoin.
Worth pointing out, however, the firm offloaded about 300 BTC in Q1. This reduced its overall stash to 5,058 BTC. Still, Nakamoto ranked 20th amongst global BTC treasury firms in terms of holdings.
That said, NAKA price slipped 7.5% on Wednesday following the reverse stock split update. It remains to be seen whether the plan will effectively boost the stock price to remain eligible for a Nasdaq listing.
That said, BTC accumulation by public companies surged 2.2% in the past 30 days to 1.23 million BTC, primarily driven by Michael Saylor’s Strategy.
Final Summary
- Nakamoto will shrink its share supply by 97% to boost its stock price and avoid Nasdaq delisting.
- The Bitcoin treasury’s stock, NAKA, has been trading below $1 for about seven months, going against Nasdaq rules.
