Key Takeaways
- Nakamoto (NAKA) has filed for shareholder consent to execute a reverse stock split ranging from 1-for-20 to 1-for-50
- Share price currently hovers between $0.21 and $0.22, representing a nearly 99% decline from May 2025 highs
- Primary objective is to meet Nasdaq’s mandatory $1 minimum bid price threshold
- More than 400 million shares have been registered for potential secondary market sales, plus a ~$7 billion shelf registration exists
- The firm liquidated approximately 5% of its bitcoin treasury, retaining 5,058 BTC
Nakamoto (NAKA) is scrambling to maintain its Nasdaq listing as shares have plummeted to approximately $0.21 — representing a catastrophic decline of nearly 99% from the company’s May 2025 peak.
The bitcoin-focused treasury company submitted a preliminary proxy statement (Schedule 14A) requesting stockholder authorization for a reverse stock split. Management is proposing a consolidation ratio between 1-for-20 and 1-for-50. In practical terms, under a 1-for-20 consolidation, twenty shares valued at $0.20 each would convert into a single share priced at $4.
This strategy is fundamentally cosmetic. A reverse consolidation doesn’t alter the company’s market capitalization or fundamental value, but it would mechanically elevate the per-share price above Nasdaq‘s $1 minimum threshold — at least temporarily.
Nasdaq listing standards mandate that companies sustain a minimum bid price of $1.00 per share. Companies trading below this level for extended periods face delisting. For Nakamoto, time is running short.
The company isn’t charting new territory here. Strive Asset Management implemented a comparable restructuring earlier this year. Bitcoin treasury-focused equities have experienced widespread declines as BTC spot prices tumbled from over $126,000 in October to approximately $70,000–$72,000 currently.
Massive Share Registration Creates Overhang
Separate from the consolidation proposal, Nakamoto submitted a Form S-3 registration covering over 400 million shares eligible for resale by current shareholders. While this doesn’t represent fresh capital raising, the substantial volume establishes significant potential selling pressure that typically weighs on market sentiment.
Additionally, the company maintains a shelf registration facility permitting up to approximately $7 billion in future securities offerings. A separate at-the-market (ATM) equity distribution program valued at roughly $5 billion grants the company authority to sell newly created shares directly into secondary markets incrementally.
This represents considerable potential dilution looming over a stock currently trading at just $0.21.
Bitcoin Treasury Reduction Signals Liquidity Concerns
Nakamoto recently liquidated around 5% of its bitcoin treasury position, reducing holdings to 5,058 BTC. This sale suggests active cash management as the organization grapples with simultaneous pressures from declining equity values and broader cryptocurrency market weakness.
The decision parallels actions taken by other blockchain-exposed companies attempting to reconcile treasury management strategies with immediate operational liquidity requirements.
The reverse split cannot proceed without shareholder authorization. Once approved, management will determine the exact consolidation ratio within the 1-for-20 to 1-for-50 approved range at their discretion.
Get 3 Free Stock Ebooks
Discover top-performing stocks in AI, Crypto, and Technology with expert analysis.
- Top 10 AI Stocks - Leading AI companies
- Top 10 Crypto Stocks - Blockchain leaders
- Top 10 Tech Stocks - Tech giants
