Nakamoto advances 1-for-40 reverse stock split after Nasdaq warning
Nakamoto is executing a 1-for-40 reverse stock split after Nasdaq warned the stock had traded below the $1 minimum bid for 30 consecutive business days. The company must regain compliance by June 8 by keeping its share price above $1 for at least 10 straight trading sessions.
The reverse stock split is scheduled to take effect on May 22. It will consolidate every 40 existing shares into one share, cutting outstanding common shares from about 696.1 million to about 17.4 million, subject to stockholder approval. The stated goal is to lift the per-share trading price and maintain Nasdaq Global Market listing eligibility.
Financially, Nakamoto posted a Q1 net loss of $238.8 million. The loss was driven largely by non-cash mark-to-market impacts tied to Bitcoin price moves, including $102.5 million in mark-to-market losses. The company also sold 284 BTC during the quarter and ended March with 5,000+ BTC (about $345 million fair value).
For crypto traders, the key link is that this reverse stock split is a Nasdaq compliance play, while earnings and fair-value results remain highly sensitive to BTC volatility.
Neutral
This news is primarily corporate—Nakamoto is using a reverse stock split to address Nasdaq listing eligibility after a sustained share-price drop. That can reduce the risk of delisting and may stabilize sentiment around the stock, but it does not directly change Bitcoin’s fundamentals.
The market impact on BTC is therefore likely indirect. Nakamoto’s reported quarterly loss is tied to non-cash Bitcoin mark-to-market revaluations, and it also sold BTC to fund operations—details that reinforce how “crypto treasury” balance sheets remain sensitive to BTC price moves. Traders may watch for future selling pressure from treasury companies, but the reverse stock split itself is not a direct BTC catalyst.
Overall, the most plausible effect is sentiment/positioning around BTC-linked equity treasuries rather than a clear bullish or bearish directional move for BTC. Hence the expected impact on BTC is neutral.