Nakamoto, a bitcoin treasury firm, is implementing a reverse stock split to boost its share price and remain listed on the Nasdaq. The company, trading at approximately $0.22 per share, has seen its value drop about 99% from its May 2025 high.
A reverse stock split consolidates existing shares into fewer, higher-priced ones. This strategy is often employed to meet Nasdaq's minimum bid price requirement of $1 per share and avert delisting. Nakamoto recently reduced its bitcoin holdings by about 5%, now holding 5,058 BTC, as part of its liquidity management.
Other bitcoin treasury firms, like Strive Asset Management, have also pursued similar measures. The broader market for these companies has suffered, mirroring the significant decline in Bitcoin's spot price from over $126,000 in October to around $70,000.
In addition to the stock split, Nakamoto has registered over 400 million shares for potential resale by existing investors, a move that does not raise new capital but could pressure the stock. The company also maintains the capacity for substantial future securities issuance and an at-the-market program.