Key Takeaways
- NAKA stock plunged over 10% during Wednesday’s trading session and has dropped nearly 67% since the start of the year.
- A 1-for-40 reverse stock split was executed on May 22 to maintain Nasdaq compliance.
- Outstanding shares decreased from approximately 696 million to roughly 17.4 million post-split.
- The stock reached a record low of $4.70 in the aftermath of the reverse split.
- Shares have plummeted more than 99% from their May 2025 high of approximately $34.
Nakamoto (NAKA) stock extended its downward trajectory, shedding more than 10% during Wednesday’s session following the implementation of a 1-for-40 reverse stock split executed last Friday. The shares touched a historic low of $4.70 immediately after the consolidation became effective, representing a nearly 67% year-to-date decline.
Prior to the reverse consolidation, NAKA had experienced a catastrophic drawdown of more than 99% from its May 2025 apex of roughly $34 per share, bottoming out at approximately $0.16 in April.
The reverse stock consolidation took effect at 12:01 a.m. Eastern Time on May 22. According to the terms, every 40 existing shares were consolidated into a single share. The total outstanding share count contracted from approximately 696 million to around 17.4 million.
Nakamoto stated that the authorized share count and par value remained unaffected, while shareholders maintained their proportional voting privileges.
The consolidation was necessitated by a Nasdaq compliance notice delivered in December. The exchange notified Nakamoto that its shares had traded beneath the $1 minimum bid price threshold for no less than 30 consecutive trading days, jeopardizing its listing status.
The company maintains a treasury of 5,058 Bitcoin, positioning it as the 20th largest publicly traded BTC holding entity based on Bitcoin Treasuries information.
Market Sentiment Remains Bearish
Investor response to the reverse consolidation has been decidedly negative. Shares immediately plunged to a record low following the split, indicating that market participants continue to harbor concerns regarding dilution exposure and financial stability.
CoinDesk had previously disclosed that Nakamoto registered over 400 million shares for potential resale and disclosed plans for up to approximately $7 billion in prospective securities offerings — disclosures that have significantly pressured investor confidence.
Cointelegraph contacted NAKA for statement but had not received a response at publication time.
NAKA’s Performance Against Industry Peers
NAKA has significantly lagged the broader Bitcoin treasury sector performance.
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 public BTC treasury with 43,514 coins, is down 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 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 stated.
Nakamoto reported a net loss during Q1 notwithstanding a sixfold increase in revenue, as previously disclosed.
The shares are presently trading near record lows in the wake of the reverse consolidation.
