Nakamoto implemented a 1-for-40 reverse stock split Thursday to avoid Nasdaq delisting. The company received a warning last December after failing to meet the exchange's minimum share price requirement. Its stock closed at $0.16 on May 20, down 99% year-over-year.
Deadline Pressure
Nasdaq's June 8 deadline forced immediate action. The reverse split effectively lifts the share price by a factor of 40 on paper. But it doesn't change the company's fundamentals or market capitalization. Investors now watch whether the new price can hold above the exchange's threshold.
Financial Strain Revealed
Nakamoto reported a $238 million net loss for Q1 2026. Over $100 million came from a 20% drop in Bitcoin's value during the quarter. The company sold 284 Bitcoin on March 31 specifically to cover operating expenses. Revenue did jump 500% quarter-over-quarter but couldn't offset the heavy losses.
Corporate Treasury Squeeze
Nakamoto holds 5,058 Bitcoin, ranking 20th globally among corporate holders. Its position seems fragile next to MicroStrategy's 843,000 Bitcoin stake. The broader sector has been struggling since 2025 as companies trade below their asset values. Genius Group's February sale of 84 BTC to pay debt shows the pattern.
The company now has two weeks to prove it can maintain compliance. Nasdaq will determine whether the move succeeded by the June 8 deadline.
