Nakamoto (NAKA) announces 1-for-40 reverse stock split to regain $1 Nasdaq bid
Bitcoin treasury firm Nakamoto (NAKA) will implement a 1-for-40 reverse stock split after shareholder approval to meet Nasdaq’s $1 minimum bid rule. The company’s stock has been trading at new lows, around $0.145–$0.158 during Wednesday’s session.
The reverse split is expected to cut shares outstanding from about 696.1M to about 17.4M, effective May 22. Nakamoto said the May 8 vote approved a split range of 1-for-20 to 1-for-50. No fractional shares will be issued, and shareholders will receive cash in lieu for fractions.
Separately, Nakamoto reported ongoing BTC treasury activity, selling its primary treasury vehicle’s BTC in the last two quarters (about $20M in Q4 and about $22M in Q1). Even after the sales, it still holds more than 5,000 BTC, valued above $388M. In Q1, the firm posted losses of about $239M, largely attributed to Bitcoin’s decline.
For crypto traders, the key question is whether the NAKA reverse stock split improves liquidity and market confidence—or whether dilution/financing concerns limit any rebound in sentiment around this BTC holder.
Neutral
This is a corporate action for Nakamoto’s stock (NAKA) rather than a direct change to Bitcoin’s supply or protocol. The reverse stock split may help improve Nasdaq compliance signals and potentially stabilize the market perception of this BTC holder in the short term. However, the company also reported BTC sales in recent quarters and sizable Q1 losses tied to Bitcoin’s decline, which keeps overhang risks for sentiment.
For BTC traders, any impact is more indirect: if the market views ongoing BTC treasury selling as bearish for custodial demand, it could weigh on near-term sentiment. Conversely, knowing Nakamoto still holds 5,000+ BTC may limit fear of immediate large-scale selling. Overall, the event is unlikely to drive a strong BTC price trend by itself, so the expected effect is neutral, with sentiment sensitivity to future disclosures remaining the main trading variable.