Nakamoto Proposes Reverse Stock Split To Avoid Nasdaq Delisting

Nakamoto is pursuing a reverse stock split to prop up its battered share price and preserve its Nasdaq listing.

“David Bailey’s bitcoin holder Nakamoto is trying to stay on Nasdaq with a reverse stock split The stock has plunged roughly 99% from its May 2025 peak as pressure builds on the bitcoin treasury firm”

@coindesk

The company plans to ask shareholders to approve a share consolidation at a ratio ranging from 1-for-20 to 1-for-50.

@coindesk

Shares trade around $0.22, down roughly 99% from their May 2025 peak.

Nasdaq requires listed companies to maintain a minimum share price of $1.

Nakamoto recently sold 5% of its Bitcoin holdings to raise liquidity and now holds 5,058 Bitcoin.

The company has registered more than 400 million shares for potential resale and outlined up to roughly $7 billion in future securities issuance.

The reverse stock split would consolidate roughly 690 million outstanding shares.

The company plans to keep its authorized share count unchanged at 10 billion.

bloomingbit

This leaves billions of shares available for future issuance, posing a risk of dilution.

Nakamoto's filing acknowledges the risk of dilution and potential price decline.

The timing is significant given the previous transaction where CEO Bailey used the company's stock to acquire his own ventures.

Nakamoto has been facing acute financial stress, evidenced by the sale of 284 Bitcoin in March.

Industry executives predict widespread failures in digital asset treasury companies by 2026.

“Summary - Nakamoto said it is pursuing a reverse stock split to lift its battered share price and keep its Nasdaq listing”

bloomingbit

The crowded market cannot support the current number of companies without additional value creation.

Surviving firms must offer products that generate consistent returns.

Treasury operations must match traditional finance standards to remain competitive.

The reverse stock split offers a short-term solution.

Long-term recovery depends on rebuilding investor confidence.