Why is Nakamoto doing a 1-for-40 reverse stock split?

Nakamoto is carrying out a 1-for-40 reverse stock split to push its share price back above Nasdaq’s $1 minimum listing requirement. The stock had traded below $1 for 30 straight business days, triggering a delisting warning from Nasdaq. Reverse splits reduce the number of shares outstanding while increasing the price per share proportionally.

What does a reverse stock split mean for Nakamoto shareholders?

In a 1-for-40 reverse split, every 40 existing shares become one new share. Shareholders own fewer shares after the split, but the overall value of their holdings should theoretically stay the same at the time of the adjustment. Reverse splits are often seen as a distress signal because companies usually use them to avoid exchange delistings.

Why did Nakamoto stock fall more than 99% from its 2025 highs?

Nakamoto shares dropped from above $25 to around 16 cents as crypto treasury companies faced weaker investor sentiment, falling Bitcoin prices and pressure on their balance sheets. The company also posted large losses tied to its Bitcoin holdings. Investors appear concerned about sustainability, dilution risk and the company’s ability to stay listed on Nasdaq.

How big was Nakamoto’s latest quarterly loss?

Nakamoto reported a $238.8 million net loss in the first quarter. More than $102 million of that came from mark-to-market losses on its Bitcoin treasury after Bitcoin fell 23% during the quarter. The result shows how heavily the company’s financial performance depends on crypto price movements.

How much Bitcoin does Nakamoto own now?

Nakamoto held 5,058 Bitcoin during the quarter, although it sold 284 Bitcoin on March 31 to help fund operational expenses. That makes Nakamoto one of the larger corporate Bitcoin holders, but still far behind major treasury players like Strategy. Investors are watching whether the company resumes buying Bitcoin or continues selling holdings to manage cash flow.

Is Nakamoto still buying Bitcoin aggressively?

No, the article says Nakamoto did not buy any additional Bitcoin during the quarter. Instead, it sold part of its treasury to cover expenses, which may signal liquidity pressure. That contrasts with more aggressive Bitcoin treasury companies that are still accumulating crypto despite market volatility.

How risky does Nakamoto stock look after this news?

Nakamoto looks highly speculative after the reverse split announcement and steep share-price decline. The company faces risks tied to Bitcoin volatility, Nasdaq compliance, operational funding needs and investor confidence. If Bitcoin prices weaken further or the stock falls below compliance levels again, pressure on the company could increase.

How does Nakamoto compare with Strategy and Metaplanet?

Strategy and Metaplanet have continued expanding their Bitcoin holdings and have generally maintained stronger market support. Nakamoto, by comparison, has been forced to sell Bitcoin and implement a reverse split to avoid delisting. That makes Nakamoto appear financially weaker and more defensive right now.

Image for illustrative purposes only. Not a real photo.

Nakamoto nears delisting with 1-for-40 split

Written by Brie CarterPublished May. 21 2026Last Updated May. 21 2026

Bitcoin treasury company Nakamoto will proceed with a 1-for-40 reverse stock split on Friday as it races to avoid delisting from the Nasdaq after its shares traded below the exchange’s $1 minimum requirement.

The company said the reverse split will reduce its outstanding common shares from 696.1 million to 17.4 million while lifting its per-share price after the stock closed down 7.5% at 16 cents on Wednesday following a collapse of more than 99% from highs above $25 last May.

“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 minimum bid price requirement for continued listing on the Nasdaq Global Market,”

Nakamoto said.

Nakamoto received a Nasdaq warning on Dec. 10 after its stock remained below $1 for 30 consecutive business days, giving the company until June 8 to restore compliance by maintaining a closing bid price above the threshold for at least 10 straight trading sessions.

The company posted a $238.8 million net loss in the first quarter despite a 500% quarter-over-quarter revenue increase, with more than $102 million linked to mark-to-market losses on its 5,058 Bitcoin holdings after the cryptocurrency fell 23% during the period, while it also sold 284 Bitcoin to cover operational expenses.

Following the announcement the Nakamoto share price was down at $0.16.

Crypto treasury companies have faced mounting pressure since 2025 as falling share prices, weaker Bitcoin accumulation and debt burdens weighed on the sector, with firms including The Genius Group liquidating Bitcoin reserves to repay liabilities while treasury leaders such as Strategy and Metaplanet continued expanding holdings.

At the time of reporting, Bitcoin price was $77,994.09.