Nakamoto (NAKA) Stock Plummets to Record Low After 1-for-40 Reverse Split

Key Highlights

Table of Contents

NAKA shares declined over 10% on Wednesday, bringing year-to-date losses to approximately 67%.
A 1-for-40 reverse stock split was implemented on May 22 to maintain Nasdaq listing requirements.
Outstanding shares were consolidated from approximately 696 million down to roughly 17.4 million.
Shares touched a record low of $4.70 in the aftermath of the reverse split.
From its May 2025 high of approximately $34, the stock has plunged more than 99%.

Nakamoto (NAKA) shares extended their downward spiral, dropping over 10% on Wednesday following last Friday’s implementation of a 1-for-40 reverse stock split. The stock touched a record low of $4.70 immediately after the consolidation took effect, pushing year-to-date losses to nearly 67%.

Nakamoto Inc., NAKA

Prior to the reverse split execution, NAKA had experienced a devastating collapse of more than 99% from its May 2025 high of approximately $34 per share, bottoming out at roughly $0.16 in April.

The consolidation became operational at 12:01 a.m. ET on May 22. According to the terms, each set of 40 existing shares was merged into a single new share. This action reduced outstanding shares from approximately 696 million to around 17.4 million.

Nakamoto confirmed that authorized shares and par value remained unaffected, while shareholders maintained their proportional voting power.

The reverse split was necessitated by a December notification from Nasdaq. The exchange informed Nakamoto that its shares had traded beneath the required $1 minimum bid price threshold for a minimum of 30 consecutive trading sessions, threatening its listing status.

According to Bitcoin Treasuries data, the company maintains a portfolio of 5,058 Bitcoin, positioning it as the 20th largest publicly traded entity holding BTC reserves.

Market Sentiment Remains Bearish

Investor reception to the reverse split has been decidedly negative. Shares immediately dropped to historic lows following the consolidation, indicating continued concerns regarding dilution threats and financial stability issues.

CoinDesk previously disclosed that Nakamoto had 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 statement but had not received a reply at press time.

Comparative Performance Against Industry Competitors

NAKA has significantly lagged behind comparable companies in the Bitcoin treasury sector.

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, most recently trading around $17.72.

Twenty-One Capital (XXI), holding the second-largest publicly traded BTC treasury with 43,514 coins, has declined more than 17% YTD but maintains a price near $7.26.

Investment firm Pantera Capital projected in January that 2026 would witness significant consolidation throughout the digital asset treasury industry. “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 wrote.

Nakamoto reported a net loss during Q1 even as revenue increased sixfold, as previously documented.

The stock continues trading near record lows in the wake of the reverse split.

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