Nakamoto (NAKA) Stock Down 99% — What the Reverse Split Means for Investors

TLDR

• Nakamoto (NAKA) is seeking shareholder approval for a reverse stock split at a ratio of 1-for-20 to 1-for-50
• The stock trades around $0.21–$0.22, down roughly 99% from its May 2025 peak
• The move aims to regain compliance with Nasdaq’s $1 minimum bid price requirement
• The company registered over 400 million shares for potential resale and has a ~$7 billion shelf registration for future securities issuance
• Nakamoto recently sold around 5% of its bitcoin holdings, leaving it with 5,058 BTC

Nakamoto (NAKA) is fighting to keep its Nasdaq listing after its stock collapsed to around $0.21 — a fall of roughly 99% from its May 2025 high.

Nakamoto Inc., NAKA

The bitcoin treasury firm filed a preliminary proxy (Schedule 14A) seeking shareholder approval for a reverse stock split. The proposed ratio sits somewhere between 1-for-20 and 1-for-50. Under a 1-for-20 split, for example, 20 shares at $0.20 would become one share at $4.

The move is entirely about price optics. A reverse split doesn’t change the underlying value of the company, but it would push the stock back above Nasdaq’s $1 minimum bid requirement — at least on paper.

Nasdaq rules require listed companies to maintain a minimum bid price of $1 per share. Fall below that for long enough, and the exchange can delist you. For Nakamoto, the clock is ticking.

Nakamoto isn’t alone in taking this route. Strive Asset Management went through a similar process earlier this year. Bitcoin treasury companies broadly have taken a beating as BTC’s spot price dropped from over $126,000 in October to around $70,000–$72,000 now.

A Wall of Potential Selling Pressure

Beyond the reverse split, Nakamoto filed a Form S-3 registering more than 400 million shares for potential resale by existing investors. No new capital is raised here, but the sheer volume creates an overhang that markets tend to take note of.

The company also holds a shelf registration allowing up to roughly $7 billion in future securities issuance. On top of that, there’s a separate at-the-market (ATM) program of up to approximately $5 billion, which would let the company sell newly issued stock directly into the open market over time.

That’s a lot of potential supply sitting above a stock priced at $0.21.

Bitcoin Holdings Under Pressure Too

Nakamoto recently sold roughly 5% of its BTC stack, leaving it with 5,058 bitcoin. The sale points to active liquidity management at a time when the company is navigating both a falling stock price and a broader crypto downturn.

The move mirrors decisions made by other crypto-linked firms trying to balance treasury strategy with day-to-day financial needs.

Shareholder approval is still needed for the reverse split to go through. If approved, the ratio will be set within the 1-for-20 to 1-for-50 range at management’s discretion.

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