Nakamoto Ticker NAKA Implements 1-for-40 Reverse Stock Split
Darius Baruo May 21, 2026 19:10
Nakamoto executes reverse split to regain Nasdaq compliance as it battles plummeting stock prices and a $238M Q1 net loss.
Nakamoto (NASDAQ: NAKA), a Bitcoin treasury company, will execute a 1-for-40 reverse stock split on Friday, aiming to lift its share price above Nasdaq's $1 minimum bid requirement. The move comes as the company faces potential delisting, having traded below $1 for 30 consecutive business days since December 10, 2025, according to SEC filings.
The reverse split, approved by shareholders earlier this month, will consolidate every 40 shares into one, reducing total outstanding shares from 696.1 million to 17.4 million. While the company’s market capitalization remains unchanged, such actions are typically aimed at boosting per-share prices to meet listing requirements. Shares of NAKA closed at $0.16 on Wednesday, down 7.5% for the day and over 99% from their May 2025 highs of $25.
"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 stated in a release. The company has until June 8 to maintain a $1 share price for at least 10 consecutive days to avoid delisting.
Reverse stock splits have become increasingly common in 2026 among struggling Nasdaq-listed companies. Lunai Bioworks, Brera Holdings, and Ernexa Therapeutics all announced similar measures this month, with reverse splits ranging from 1-for-8 to 1-for-25. However, while reverse splits can temporarily address compliance issues, they do little to fix underlying business challenges. For Nakamoto, those challenges are significant.
Plummeting Financials and Bitcoin Treasury Struggles
Nakamoto posted a staggering $238.8 million net loss in Q1 2026, partially driven by a $102 million mark-to-market loss on its Bitcoin holdings after the cryptocurrency’s value dropped 23% during the quarter. The company holds 5,058 BTC, making it the 20th largest Bitcoin treasury globally, according to BitcoinTreasuries.net. However, Nakamoto has not added to its Bitcoin reserves in recent months, selling 284 BTC on March 31 to fund operational expenses.
Crypto treasury companies have faced mounting pressure over the past year, with many stocks trading below the value of their Bitcoin reserves. A September 2025 report from Standard Chartered highlighted widespread declines across the sector. Wojciech Kaszycki, Chief Strategy Officer at BTCS, recently suggested the industry may see consolidation as firms struggle to stay afloat.
Market Implications
For investors, Nakamoto’s reverse stock split signals a desperate attempt to maintain its Nasdaq listing amidst deteriorating fundamentals. While the reduced share count may theoretically increase liquidity and attract institutional buyers, its effectiveness depends on broader market sentiment and the company’s ability to stabilize operations. With Bitcoin prices still volatile and Nakamoto’s stock down over 99% in the past year, the path forward remains uncertain.
Nakamoto’s compliance deadline of June 8 will serve as a key near-term milestone. Traders will also be watching closely for any updates on its Bitcoin strategy, as further sales from its treasury could signal continued cash flow issues. For now, the reverse split buys the company time, but it does not solve the deeper questions about its long-term viability.
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