Publicly traded bitcoin treasury company Nakamoto Inc (Nasdaq: NAKA) announced a 1-for-40 reverse stock split, aiming to regain compliance with Nasdaq’s $1 minimum bid price requirement. The reverse split will take effect at market open on Friday, May 22, and the company will retain its NAKA ticker.
The decision was approved by shareholders at a special May 8 meeting, where the board considered a ratio between 1-to-20 and 1-to-50. Under the plan, outstanding common shares will shrink from approximately 696.1 million to 17.4 million, with holders receiving cash payments for any resulting fractional shares.
The move follows a catastrophic slide in the stock, which has plunged more than 99.5% from last May’s high of $29 after the company merged with KindlyMD and launched its bitcoin accumulation strategy. In Wednesday’s session, NAKA dropped 17% to as low as $0.14 immediately after the split announcement before recovering to $0.16.
Earlier this month, Nakamoto reported a $238.8 million first-quarter net loss, largely driven by a $102.5 million unrealized loss tied to bitcoin’s price decline. The company holds 5,058 bitcoins worth nearly $391 million, making it the 20th-largest public bitcoin holder. It sold 284 BTC in Q1 for working capital and also debuted an actively managed bitcoin derivatives strategy, generating approximately 43 bitcoins in premiums before 40 BTC were later sold.
“We remain highly confident in the long-term earnings power of the company we are building,” CEO David Bailey said. “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.”
