Key Takeaways
- Nakamoto (NAKA) has filed for shareholder authorization to execute a reverse stock split ranging from 1-for-20 to 1-for-50
- Shares currently trade near $0.21–$0.22, representing approximately 99% depreciation from May 2025 highs
- Primary objective is restoring compliance with Nasdaq’s minimum $1 bid price threshold
- More than 400 million shares have been registered for potential secondary sales, while the firm maintains a ~$7 billion shelf registration
- The company liquidated roughly 5% of its bitcoin reserves, retaining 5,058 BTC
Nakamoto (NAKA) is battling to preserve its Nasdaq listing following a catastrophic decline that has pushed shares down to approximately $0.21 — representing a staggering 99% drop from the May 2025 peak.
The bitcoin-focused treasury company submitted a preliminary proxy statement (Schedule 14A) requesting shareholder consent for implementing a reverse stock split. Management is proposing a consolidation ratio between 1-for-20 and 1-for-50. In practical terms, a 1-for-20 consolidation would convert every 20 shares valued at $0.20 into a single share priced at $4.
This corporate action centers purely on share price presentation. While a reverse split has no impact on the company’s fundamental market capitalization, it would mechanically elevate the stock price above Nasdaq‘s mandatory $1 minimum bid threshold — at least initially.
Nasdaq listing standards mandate that publicly traded companies sustain a minimum bid price of $1.00 per share. Prolonged noncompliance triggers potential delisting procedures. For Nakamoto, time is running short.
This strategy isn’t unprecedented in the sector. Strive Asset Management executed a comparable restructuring earlier this year. Bitcoin treasury-focused enterprises have experienced widespread valuation compression as BTC’s market price retreated from October’s $126,000 level to the current $70,000–$72,000 range.
Massive Dilution Risk Looms
Compounding the reverse split filing, Nakamoto submitted an S-3 registration covering over 400 million shares available for resale by current stakeholders. While this doesn’t constitute fresh capital raising, the substantial volume represents significant potential selling pressure that market participants typically monitor closely.
Additionally, the company maintains an active shelf registration permitting approximately $7 billion in future securities offerings. There’s also a separate at-the-market (ATM) facility totaling around $5 billion, enabling the gradual sale of newly created shares directly into public markets.
This represents considerable potential dilution hovering over a stock currently trading at just $0.21.
Bitcoin Treasury Strategy Evolves
Nakamoto recently liquidated approximately 5% of its cryptocurrency holdings, reducing its position to 5,058 bitcoin. This disposition suggests proactive cash management during a period marked by both deteriorating equity valuations and broader cryptocurrency market weakness.
The transaction reflects similar strategic adjustments implemented by other blockchain-aligned companies attempting to reconcile treasury optimization with operational funding requirements.
The proposed reverse split requires formal shareholder ratification before implementation. Upon approval, management retains discretion to select the final consolidation ratio within the established 1-for-20 to 1-for-50 parameters.
