Nakamoto, the crypto-focused firm, executed a 1-for-40 reverse stock split this week. The move is meant to push its share price high enough to satisfy NASDAQ's listing requirements — specifically the minimum bid price rule. Companies that trade below $1 for 30 consecutive days risk delisting, and Nakamoto had been hovering in that danger zone.
Why the split was necessary
NASDAQ requires listed stocks to maintain a bid price of at least $1 per share. Nakamoto's stock had been trading well below that threshold for weeks. By consolidating every 40 existing shares into one, the company effectively multiplied its per-share price by 40 overnight. It's a mechanical fix — the company's market capitalization doesn't change — but it lets the exchange's rulebook. Without it, Nakamoto could have been kicked off the exchange, a blow to its legitimacy and liquidity.
Existing shareholders now hold fewer shares, but each one is worth more on paper. The real test is whether the stock stays above $1. That depends almost entirely on Bitcoin. When Bitcoin rallies, investor confidence in Nakamoto tends to rise. When it drops, so does the stock — and the reverse split doesn't change that. One trader described the situation as a temporary bandage, not a cure.
Next steps
Nakamoto's stock will begin trading under the new post-split price on Monday. The company's board has no further share consolidation plans announced. For now, all eyes are on Bitcoin's next move. If the crypto market stays choppy, Nakamoto may find itself back in the same spot within a few months — and NASDAQ won't grant unlimited second chances.
