TLDR
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Nakamoto will carry out a 1-for-40 reverse stock split to raise its share price above Nasdaq requirements.
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The company received a Nasdaq warning after its stock stayed below $1 for 30 consecutive business days.
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Nakamoto must maintain a share price above $1 for at least 10 days before the June 8 deadline.
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The reverse split will reduce total shares from 696.1 million to 17.4 million.
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Nakamoto’s stock closed at $0.16 and has fallen more than 99% from its peak last year.
Nakamoto will implement a 1-for-40 reverse stock split on Friday after shareholder approval. The move aims to lift its share price above the Nasdaq’s $1 minimum requirement. Nakamoto is seeking to avoid delisting after months of declining stock performance.
Nakamoto Moves to Meet Nasdaq Listing Rules
Nakamoto received a Nasdaq notice on Dec. 10 after its stock stayed below $1 for 30 days. The exchange requires companies to maintain a minimum bid price to remain listed.
The company has until June 8 to regain compliance with the rule. It must keep its stock above $1 for at least 10 consecutive days.
A reverse stock split reduces the number of outstanding shares. In this case, every 40 shares will convert into one share.
Nakamoto said the split will reduce total shares from 696.1 million to 17.4 million. The company confirmed the change in a Wednesday statement.
Following Stockholder Approval, Nakamoto Announces 1-for-40 Reverse Stock Split to be Effective May 22, 2026
Read the full announcement here: https://t.co/AnqTXttIMQ
— Nakamoto (@nakamoto) May 20, 2026
“The reverse stock split is intended to increase the per-share trading price,” the company said. It added that the move supports continued listing on the Nasdaq Global Market.
Nakamoto’s stock closed at $0.16 on Wednesday, down 7.5%. The stock has dropped over 99% since May last year.
The company traded above $25 last year after announcing its Bitcoin treasury strategy. It also completed a merger with healthcare provider KindlyMD during that period.
Financial Losses and Bitcoin Treasury Impact
Nakamoto reported its first-quarter results on May 14 with a sharp rise in revenue. However, it posted a net loss of $238.8 million.
More than $102 million of the loss came from a mark-to-market decline. The company holds 5,058 Bitcoin, which fell 23% during the quarter.
Nakamoto did not purchase additional Bitcoin during the quarter. It sold 284 Bitcoin on March 31 to fund operations.
The firm ranks as the 20th largest Bitcoin treasury holder. Data shows it sits just behind ProCap Financial with 5,457 Bitcoin.
Other crypto treasury companies have slowed Bitcoin accumulation in recent months. Some firms have sold holdings to manage debt obligations.
Genius Group liquidated its 84 Bitcoin treasury in February to cover liabilities. This reflects ongoing pressure in the sector.
Standard Chartered reported last year that many treasury firms trade below their crypto asset value. This trend has continued into 2026.
Nakamoto shareholders approved a reverse split range between 1-for-20 and 1-for-50 on May 8. The company confirmed Friday as the effective date for the split.
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