Bitcoin Treasury company Nakamoto will move forward with a 1-for-40 reverse stock split plan. As such, for every 40 NAKA shares, only 1 share will be issued from May 22.
The plan would effectively reduce NAKA’s inventory supply from 696.1 million to 17.4 million – a 97.5% contraction in circulating supply.
In one statementAccording to the company, this move will boost its stock price to avoid delisting from the Nasdaq stock exchange.
The reverse stock split is intended to increase the trading price per share of the Company’s common stock to regain compliance with the minimum bid price requirement of $1.00 for continued listing on the Nasdaq Global Market.
A random check of the price charts showed that NAKA’s price fell below $1 last October. Since then, the rate has been below the dollar for seven months. At the time of writing, the stock was trading at 15 cents, translating into a 99% crash from a peak of $34 in mid-2025.
Nakamoto navigates the crypto winter
Like most Bitcoin government bonds and crypto companies, the first quarter of 2026 was difficult for the company. Nakamoto posted a net loss of $238.8 million. Half of the losses were related to the broader market decline that devalued BTC holdings.
Still, Nakamoto CEO David Bailey remained optimistic for the rest of 2026, noting:
Our focus for the remainder of 2026 is on execution: scaling our operations, expanding revenue opportunities and continuing to build sustainable shareholder value through disciplined capital allocation and long-term conviction in Bitcoin.
However, it’s worth pointing out that the company sold around 300 BTC in the first quarter. This reduced the total supply to 5,058 BTC. Yet Nakamoto ranks 20th among global BTC treasury companies in terms of holdings.
That said, NAKA price fell 7.5% on Wednesday following the reverse stock split update. It remains to be seen whether the plan will effectively increase the stock price to remain eligible for a Nasdaq listing.
That said, BTC accumulation by publicly traded companies has increased 2.2% to 1.23 million BTC over the past 30 days, largely driven by Michael Saylor’s Strategy.
Final summary
- Nakamoto will reduce its stock offering by 97% to increase the stock price and prevent the Nasdaq IPO.
- Shares of Bitcoin Treasury, NAKA, have been trading below $1 for about seven months, in violation of Nasdaq rules.