Key Takeaways
- NAKA shares dropped over 10% during Wednesday’s trading session and have declined approximately 67% since the start of the year.
- A 1-for-40 reverse stock split was executed on May 22 to meet Nasdaq’s continued listing requirements.
- Outstanding shares were reduced from approximately 696 million to roughly 17.4 million through the consolidation.
- Following the reverse split, NAKA reached a record low of $4.70.
- Shares have plummeted more than 99% from their May 2025 high of approximately $34.
Nakamoto (NAKA) stock extended its downward trajectory this week, declining more than 10% on Wednesday following the implementation of a 1-for-40 reverse stock split that became effective last Friday. The shares touched a record low of $4.70 in the immediate aftermath of the consolidation, bringing year-to-date losses to nearly 67%.
Prior to the reverse consolidation, NAKA had experienced a catastrophic decline of more than 99% from its May 2025 peak of approximately $34 per share, bottoming out at roughly $0.16 in April.
The reverse stock split took effect at 12:01 a.m. Eastern Time on May 22. According to the consolidation terms, each group of 40 pre-split shares was combined into a single share. This action reduced the company’s outstanding share count from approximately 696 million to around 17.4 million.
Nakamoto confirmed that its authorized share count and par value per share remained unaffected, while shareholders maintained their proportional voting rights post-split.
The consolidation was necessitated by a compliance notice from Nasdaq received in December. The stock exchange notified Nakamoto that its shares had traded beneath the required $1 minimum bid price threshold for at least 30 consecutive trading days, threatening its listing status.
According to data from Bitcoin Treasuries, the company maintains a treasury of 5,058 Bitcoin, positioning it as the 20th largest public corporation by BTC holdings.
Market Sentiment Remains Bearish
Investor response to the reverse consolidation has been decidedly negative. Shares immediately declined to unprecedented lows following the split, indicating that market participants continue to worry about dilution concerns and the company’s financial position.
CoinDesk had previously disclosed that Nakamoto registered over 400 million shares for potential resale and disclosed plans for approximately $7 billion in possible future securities offerings — factors that have significantly dampened investor confidence.
Cointelegraph attempted to contact NAKA for commentary but had not received a reply at press time.
Performance Comparison With Bitcoin Treasury Companies
NAKA’s performance has dramatically lagged behind other publicly traded Bitcoin treasury firms.
Strategy (MSTR), which holds the largest publicly traded Bitcoin position, has gained approximately 2.5% year-to-date and is currently trading near $155 per share.
Strive Asset Management (ASST) has surged over 20% YTD, with shares last trading around $17.72.
Twenty-One Capital (XXI), the second-largest public Bitcoin treasury holder with 43,514 coins, has declined more than 17% YTD but maintains a price level around $7.26.
Investment firm Pantera Capital projected in January that 2026 would witness significant consolidation throughout the digital asset treasury sector. “2026 will see brutal pruning. In each major asset class, only one or two players will dominate. Everyone else gets acquired or left behind,” their analysts stated.
Despite achieving sixfold revenue expansion, Nakamoto reported a net loss during the first quarter, as previously disclosed.
Shares continue to trade near record lows in the wake of the reverse split implementation.
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