Nakamoto Plans 1-for-40 Reverse Stock Split to Avoid Nasdaq Delisting Pressure

Bitcoin treasury company Nakamoto is moving ahead with a shareholder-approved 1-for-40 reverse stock split in an effort to avoid being delisted from the Nasdaq Stock Exchange. The move will take effect on Friday as the company tries to lift its share price back above the required minimum level.

Nasdaq issued a warning to Nakamoto on Dec. 10 after the stock stayed below $1 for 30 straight business days. The company now has until June 8 to regain compliance and must keep its share price above $1 for at least 10 consecutive trading days.

Under the reverse split, every 40 existing shares will be combined into one. As a result, Nakamoto’s total outstanding shares will drop from 696.1 million to about 17.4 million. The company said the move is designed to increase the per-share price and meet Nasdaq listing rules.

Stock Collapse and Heavy Losses Hit Nakamoto

Nakamoto shares closed at 16 cents on Wednesday, falling 7.5% in a single session and dropping more than 99% from their May 2025 peak above $25, when the firm launched its Bitcoin treasury strategy and merged with KindlyMD.

Shareholders previously approved a reverse split range between 1-for-20 and 1-for-50, with management selecting 1-for-40.

Bitcoin Holdings and Financial Pressure Increase

The company reported a $238.8 million net loss in Q1 despite a 500% rise in quarterly revenue. More than $102 million of the loss came from a Bitcoin mark-to-market decline after BTC fell 23% during the quarter.

Nakamoto holds 5,058 BTC, making it the 20th largest corporate Bitcoin treasury. However, it sold 284 BTC in March to cover operating costs and made no new purchases during the quarter.

Industry data shows many crypto treasury firms have slowed accumulation or sold holdings, with analysts warning that consolidation and mergers may increase as financial pressure continues.