Nakamoto, a bitcoin treasury firm, is proposing a reverse stock split ranging from 1-for-20 to 1-for-50 to comply with Nasdaq’s $1 minimum bid requirement, as its stock price has plummeted approximately 99% since its peak in May 2025. Currently trading at around $0.22, the move aims to bolster its share price and avoid delisting. In conjunction with this strategy, Nakamoto has registered over 400 million shares for resale and has a shelf registration for up to $7 billion in future securities issuance, which could exert downward pressure on the stock.
This situation underscores the challenges facing bitcoin-related firms amid the broader cryptocurrency market downturn, with BTC’s price dropping from over $126,000 to around $70,000. Nakamoto’s recent sale of 5% of its bitcoin holdings further highlights its need for liquidity management.
Market professionals should monitor Nakamoto’s reverse split outcome and the potential impact of its substantial share registration on stock performance, as it could create significant volatility in the near term.
Source: coindesk.com