Nakamoto, the Bitcoin treasury company that bet big on the asset, is planning a 1-for-40 reverse stock split to bring its share price back above the $1 minimum required by Nasdaq. The move comes after the company's stock lost 99% of its value, leaving it in danger of being delisted. The split, essentially consolidating every 40 shares into one, is a last-resort maneuver to satisfy exchange rules.
Why the split is needed
Nasdaq requires listed companies to maintain a minimum bid price of $1 per share. Nakamoto's shares have been trading far below that threshold for weeks, a direct consequence of a 99% price plunge that wiped out most of the company's market value. The company's core asset — Bitcoin — has seen its own price swings this year, but the facts don't indicate whether that's the sole cause of the drop. What's clear is that without a fix, Nakamoto risks removal from the exchange, which would cut off access to public markets and likely spook investors further.
How a reverse split works
A 1-for-40 reverse split is exactly what it sounds like: each shareholder's 40 shares become one, and the stock price is multiplied by 40. The total value of one's holdings doesn't change — at least not on paper. The move is purely mechanical, meant to push the nominal price above the Nasdaq threshold. It doesn't fix underlying business problems, but it buys time. Investors have seen this before from other struggling crypto-adjacent firms; the split alone rarely reverses a company's fortunes.
Reverse splits require shareholder approval, and Nakamoto hasn't announced when it will hold a vote. The company's stock is still trading, but with the price barely pennies, the clock is ticking. If the split goes through and the stock stays above $1 for 10 consecutive business days, Nasdaq will consider the compliance issue resolved — at least for now. If it doesn't, delisting proceedings could begin. Nakamoto's future hinges on whether this technical fix can hold long enough for something else to turn around.
