Nakamoto, a prominent Bitcoin treasury company, is set to implement a shareholder-approved 1-for-40 reverse stock split on Friday as part of its strategy to avoid being delisted from the Nasdaq Stock Exchange. This decision comes after the company received a notification from Nasdaq on December 10, indicating that its stock price had dipped below the $1 minimum threshold for 30 consecutive business days. To rectify this situation and maintain its listing, Nakamoto must elevate its stock price above $1 for a minimum of 10 days by June 8.
The reverse stock split will significantly alter the company’s share structure, combining every 40 shares into a single new share. As a result, Nakamoto’s total common shares will decrease dramatically from 696.1 million to approximately 17.4 million. Officials from the company clarified that this maneuver is aimed at raising the per-share trading price and ensuring compliance with the Nasdaq’s listing requirements.
The cryptocurrency treasury sector has been facing significant challenges since 2025, with numerous firms experiencing stock price declines that have fallen below the value of the cryptocurrencies they hold. Reports from Standard Chartered last September highlighted the dire condition of the industry. Wojciech Kaszycki, the chief strategy officer of BTCS, indicated earlier this year that many treasury companies are likely to pursue mergers and consolidations as a survival strategy in response to the ongoing downturn.
In a recent update, Nakamoto’s stock, denoted as NAKA, closed at 16 cents, reflecting a drop of 7.5%. This decline marks over a 99% decrease compared to May of the previous year, when shares traded above $25, following the announcement of the company’s Bitcoin treasury strategy and a merger with health care provider KindlyMD.
In conjunction with the split announcement, Nakamoto reported its first-quarter financials, revealing a staggering net loss of $238.8 million. While the company did see a 500% increase in revenue quarter-over-quarter, over $102 million of this loss was attributed to a mark-to-market decline in its Bitcoin treasury, which consists of 5,058 Bitcoins, as the cryptocurrency’s value fell by 23% within the quarter.
The majority of Bitcoin treasury companies have curtailed their Bitcoin purchases in the past year. Some have even resorted to liquidating their Bitcoin assets to manage debt, exemplified by The Genius Group’s sale of its entire treasury of 84 Bitcoins in February. In contrast, Nakamoto did not acquire any Bitcoin during the recent quarter but sold 284 Bitcoins on March 31 to cover operational costs.
Currently, Nakamoto ranks as the 20th largest Bitcoin treasury firm, positioned just behind ProCap Financial, which holds 5,457 Bitcoins. At the top of the list is Strategy, led by Michael Saylor, boasting over 843,000 Bitcoins in its treasury.
