Key Takeaways
- Nakamoto (NAKA) has filed for shareholder authorization on a reverse stock split between 1-for-20 and 1-for-50 ratios
- Shares currently hover near $0.21–$0.22, representing approximately a 99% decline from May 2025 highs
- The proposed action targets restoring compliance with Nasdaq’s minimum $1 bid price rule
- More than 400 million shares have been registered for possible resale, with a shelf registration totaling roughly $7 billion available
- The firm liquidated approximately 5% of its bitcoin treasury, maintaining 5,058 BTC
Nakamoto (NAKA) faces a critical battle to maintain its Nasdaq presence following a catastrophic share price decline to approximately $0.21 — representing a staggering 99% drop from its May 2025 peak.
The cryptocurrency treasury company submitted a preliminary proxy statement (Schedule 14A) requesting shareholder consent for implementing a reverse stock split. The contemplated consolidation range spans from 1-for-20 through 1-for-50. To illustrate, a 1-for-20 consolidation would transform 20 shares valued at $0.20 each into a single share priced at $4.
This strategy centers purely on share price presentation. While a reverse consolidation doesn’t alter a company’s fundamental market capitalization, it would theoretically elevate the stock above Nasdaq‘s mandatory $1 minimum bid threshold — at least temporarily.
Nasdaq listing standards mandate that companies preserve a $1 per share minimum bid price. Extended non-compliance can result in delisting from the exchange. For Nakamoto, time is running short.
Nakamoto isn’t navigating this challenge alone. Strive Asset Management executed a comparable strategy months ago. Bitcoin treasury firms across the board have suffered substantial losses as BTC’s market value tumbled from above $126,000 in October to approximately $70,000–$72,000 currently.
Massive Supply Overhang Looms
Along with the consolidation proposal, Nakamoto submitted Form S-3 documentation registering over 400 million shares for potential secondary market sales by current stakeholders. While this registration doesn’t generate fresh capital for the company, the substantial share volume introduces significant potential selling pressure that investors typically monitor closely.
Additionally, the firm maintains an active shelf registration framework permitting approximately $7 billion in future securities offerings. Supplementing this structure is a distinct at-the-market (ATM) facility worth roughly $5 billion, enabling the company to distribute newly created shares directly into trading markets incrementally.
This represents considerable potential dilution hovering over a stock trading at just $0.21.
Bitcoin Treasury Sees Reduction
Nakamoto recently divested approximately 5% of its bitcoin portfolio, reducing its holdings to 5,058 BTC. This liquidation suggests proactive cash management during a period when the firm confronts both collapsing equity valuations and widespread cryptocurrency market weakness.
The decision reflects similar actions taken by other blockchain-focused companies attempting to balance treasury preservation with operational liquidity requirements.
Shareholder authorization remains required before the reverse split can be executed. Upon approval, management will determine the final ratio within the authorized 1-for-20 to 1-for-50 parameters.
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
