Nakamoto (NAKA) Stock Plummets 99%: Reverse Split Plan Emerges to Save Nasdaq Listing

Key Takeaways

• Nakamoto (NAKA) has requested shareholder authorization for a reverse stock split ranging from 1-for-20 to 1-for-50
• Shares currently hover between $0.21 and $0.22, representing approximately a 99% decline from their May 2025 high point
• The primary objective is restoring compliance with Nasdaq’s minimum $1 bid price rule
• More than 400 million shares have been registered for potential resale by existing stakeholders, while a shelf registration covers approximately $7 billion in future securities
• The firm liquidated roughly 5% of its bitcoin treasury, retaining 5,058 BTC

Nakamoto (NAKA) is scrambling to maintain its Nasdaq position following a devastating stock price decline to approximately $0.21 — representing a staggering 99% drop from its peak in May 2025.

Nakamoto Inc., NAKA

The bitcoin-focused treasury company submitted a preliminary proxy statement (Schedule 14A) requesting shareholder consent for implementing a reverse stock split. The contemplated consolidation ratio ranges between 1-for-20 and 1-for-50. In practical terms, a 1-for-20 consolidation would convert 20 shares valued at $0.20 each into a single share priced at $4.

This strategic maneuver focuses purely on meeting price thresholds. While a reverse split consolidates shares without altering fundamental company value, it would mechanically elevate the stock price above Nasdaq’s mandatory $1 minimum bid threshold — at least initially.

Nasdaq listing standards mandate that companies preserve a minimum $1 per share bid price. Extended non-compliance with this requirement triggers potential delisting procedures. For Nakamoto, time is running short.

Nakamoto isn’t navigating this challenge in isolation. Strive Asset Management executed a comparable strategy earlier this year. Bitcoin treasury corporations have collectively suffered as BTC’s market price tumbled from above $126,000 in October to the current $70,000–$72,000 range.

Significant Supply Overhang Looms

Apart from the consolidation plan, Nakamoto submitted a Form S-3 registration covering over 400 million shares available for resale by current shareholders. While this doesn’t involve raising fresh capital, the substantial volume represents considerable potential selling pressure that typically weighs on market sentiment.

Additionally, the company maintains a shelf registration permitting approximately $7 billion in future securities offerings. A separate at-the-market (ATM) facility worth roughly $5 billion enables the firm to distribute newly created shares directly into public markets gradually.

This represents substantial prospective dilution hanging over a stock currently valued at just $0.21 per share.

Bitcoin Treasury Also Facing Adjustments

Nakamoto recently divested approximately 5% of its bitcoin reserves, reducing its holdings to 5,058 BTC. This transaction suggests proactive liquidity management as the company contends with simultaneous stock price deterioration and cryptocurrency market weakness.

The decision reflects similar actions taken by other blockchain-exposed companies attempting to balance treasury optimization with operational funding requirements.

Shareholder authorization remains necessary before the reverse split can proceed. Once approved, management will determine the specific ratio within the approved 1-for-20 to 1-for-50 range.

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