Key Highlights
- Nakamoto (NAKA) has filed for shareholder consent to execute a reverse stock split ranging from 1-for-20 up to 1-for-50
- Share price currently hovers between $0.21 and $0.22, representing approximately a 99% decline since May 2025 highs
- Primary objective is to restore compliance with Nasdaq’s minimum $1 bid price standard
- More than 400 million shares have been registered for possible resale, while a shelf registration totaling ~$7 billion exists for future offerings
- The firm liquidated approximately 5% of its bitcoin treasury, maintaining 5,058 BTC in reserves
Nakamoto (NAKA) finds itself in a critical battle to preserve its Nasdaq listing as shares have plummeted to approximately $0.21 — representing a staggering 99% erosion from peak levels reached in May 2025.
The cryptocurrency-focused treasury company submitted a preliminary proxy statement (Schedule 14A) requesting shareholder authorization for implementing a reverse stock split. The consolidation ratio under consideration ranges between 1-for-20 and 1-for-50. To illustrate: in a 1-for-20 scenario, investors holding 20 shares valued at $0.20 each would receive one consolidated share priced at $4.
This strategic maneuver centers purely on share price aesthetics. While a reverse consolidation doesn’t alter the company’s fundamental market capitalization, it would mathematically elevate the per-share price above Nasdaq’s mandatory $1 minimum bid threshold — temporarily addressing compliance concerns.
Nasdaq listing standards mandate that companies sustain a minimum bid price of $1 per share. Extended non-compliance with this requirement can trigger delisting procedures. For Nakamoto, time is of the essence.
This isn’t an isolated case. Strive Asset Management underwent a comparable restructuring process earlier this year. Bitcoin treasury companies across the sector have experienced significant valuation pressure as BTC’s market price retreated from highs exceeding $126,000 in October to current levels around $70,000–$72,000.
Substantial Registered Share Overhang
Compounding the reverse split announcement, Nakamoto submitted an S-3 registration covering over 400 million shares available for potential resale by current stakeholders. While this registration doesn’t involve raising fresh capital, the considerable share volume represents a significant potential supply overhang that market participants typically factor into valuations.
Additionally, the company maintains an active shelf registration facility permitting approximately $7 billion in future securities offerings. Layered on top of this is a distinct at-the-market (ATM) facility valued at roughly $5 billion, enabling the company to distribute newly issued equity directly into public markets incrementally.
This represents substantial dilutive capacity hovering over a stock currently trading at just $0.21 per share.
Bitcoin Treasury Adjustments Signal Liquidity Management
Nakamoto recently divested approximately 5% of its bitcoin reserves, reducing its holdings to 5,058 BTC. This liquidation suggests proactive liquidity management during a period characterized by declining equity valuations and broader cryptocurrency market headwinds.
This decision reflects similar actions taken by other blockchain-exposed companies attempting to balance strategic treasury positioning against immediate operational capital requirements.
Shareholder ratification remains necessary before the reverse split can be executed. Upon approval, management will determine the specific consolidation ratio within the authorized 1-for-20 to 1-for-50 parameter range.
