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.
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