Bitcoin treasury firm Nakamoto (NAKA) is relying on a familiar Wall Street strategy as it seeks to boost its flagging stock price and stay on the Nasdaq.
According to its preliminary proxy filing (Schedule 14A), the company is seeking approval for a “reverse stock split,” consolidating its shares in a ratio between 20-20 and 50-50, as its stock price has fallen to about $0.22. Prices are down about 99% from their peak in May 2025.
In a reverse stock split, the number of outstanding shares decreases, but the stock price increases proportionately. For example, 20 shares at $0.20 become 1 share at $4. This does not change a company’s fundamental value, but is often used to restore compliance with Nasdaq’s $1 minimum bid requirement and avoid delisting. Nasdaq requires listed companies to maintain a minimum bid of $1 per share, and companies that fail to secure that within a certain period risk delisting.
Nakamoto recently sold about 5% of his Bitcoin holdings, leaving his holdings at 5,058 bits. $BTCpoints to ongoing liquidity management.
Other Bitcoin finance companies have taken similar steps, including Strive Asset Management earlier this year. Most DAT stocks have fallen sharply in recent months, following the collapse in stock prices. $BTCThe spot price for the stock rose to about $70,000 from more than $126,000 in October.
In parallel with the reverse stock split, the company registered more than 400 million shares for potential resale by existing investors in a Form S-3 filing. While this does not raise new capital, it does create a large overhang that could weigh on the stock price.
The company also has a shelf registration that allows it to issue up to approximately $7 billion in securities in the future. This is in addition to an approximately $5 billion at-the-market (ATM) program that allows newly issued shares to be sold directly to the market over time.
