Nakamoto (NAKA), the bitcoin-treasury company led by David Bailey, is turning to a classic Wall Street tactic to try to stay listed on Nasdaq: a potential reverse stock split.
What’s proposed
- In a preliminary Schedule 14A proxy filing, Nakamoto asked shareholders to approve a reverse split at a ratio to be set somewhere between 1-for-20 and 1-for-50.
- The move would reduce the number of shares outstanding and proportionally boost the per-share price (for example, 20 shares at $0.20 would become one share at $4). While this doesn’t change the company’s market value, it can help meet Nasdaq’s $1 minimum bid requirement and avoid delisting.
Why it’s happening
- Nakamoto’s shares have plunged to roughly $0.22, down about 99% from their May 2025 peak. Nasdaq requires listed companies to maintain a $1 minimum bid, and firms that fail to cure a sub-$1 price within set windows risk removal from the exchange.
Treasury and capital actions
- The company recently sold about 5% of its bitcoin holdings and now holds 5,058 BTC, citing liquidity management.
- In a separate Form S-3 filing, Nakamoto registered more than 400 million shares for potential resale by existing investors — a registration that doesn’t raise new capital but could create a sizable overhang on the stock.
- Nakamoto also has a shelf registration that would allow up to roughly $7 billion in future securities issuance, and an at-the-market (ATM) program of up to approximately $5 billion to sell newly issued shares into the market over time.
Market context
- Nakamoto isn’t alone: other bitcoin-treasury and digital-asset firms have taken similar steps this year (Strive Asset Management is a recent example). Shares of many bitcoin-related companies have been hammered as BTC’s spot price retraced from over $126,000 in October to roughly $70,000 today.
Bottom line
The reverse split is a defensive, compliance-driven move: it could buy Nakamoto time on Nasdaq, but the newly registered shares and large-cap issuance programs present potential dilution risks and a lingering overhang for investors to watch.
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