Nakamoto (NAKA), a publicly-traded Bitcoin treasury company, is seeking shareholder approval for a reverse stock split as its share price has plummeted to approximately $0.21–$0.22, far below the Nasdaq's minimum $1 listing requirement. The company's preliminary proxy filing outlines a proposed split ratio between 1-for-20 and 1-for-50, a move designed to artificially boost the per-share price to regain compliance and avoid delisting.
The company's stock has fallen roughly 99% from its peak in May 2025, mirroring broader struggles among crypto-linked equities. This decline tracks the correction in Bitcoin's spot price from over $126,000 in October to around $70,000. Nakamoto recently sold about 5% of its Bitcoin holdings, leaving its treasury with 5,058 BTC, indicating ongoing liquidity management efforts.
The reverse split does not change Nakamoto's underlying market value but is a critical procedural step. Failure to maintain the $1 minimum bid price risks a delisting notice from Nasdaq, which would reduce liquidity, investor access, and institutional participation. The company is not alone; other Bitcoin treasury firms like Strive Asset Management have taken similar measures this year.
Alongside the reverse split proposal, Nakamoto filed a Form S-3, registering over 400 million shares for potential resale by existing investors. This creates a significant overhang that could pressure the stock price further. The company also maintains shelf registrations for up to roughly $7 billion in future securities issuance and an at-the-market (ATM) program allowing it to sell up to $5 billion in new shares directly into the market over time.
The decision places Nakamoto at a crucial juncture. While the reverse split offers a short-term structural fix to maintain its Nasdaq listing, long-term recovery hinges on rebuilding investor confidence, strategic execution, and navigating the volatile crypto equity market.
