Nakamoto's Bold 1-for-40 Stock Split as Shares Plunge 99%
By John Nada·May 21, 2026·3 min read
Nakamoto executes a 1-for-40 reverse stock split after shares nosedive 99.5%. Aims to meet Nasdaq's $1 minimum bid requirement.
Nakamoto, the Bitcoin treasury firm, is taking drastic action. A 1-for-40 reverse stock split is on the table, aiming to lift its share price back to Nasdaq's minimum listing standards. This maneuver seeks to elevate shares to at least $1 as they currently languish at $0.158, a far cry from their 52-week high of $34.77.
The firm’s announcement follows a tumultuous period, marked by a staggering 99.5% drop from peak to trough over the past year. Recent losses of around $239 million in Q1, driven by Bitcoin's price slump, further exacerbated the situation, according to Decrypt.
Shareholders gave the green light earlier in May for a split ranging from 1-for-20 to 1-for-50. Nakamoto opted for the more extreme end at 1-for-40, with the move expected to take effect on Friday, May 22. This reduces the common stock from 696.1 million shares to 17.4 million.
Nakamoto's reliance on Bitcoin as a treasury vehicle has been a double-edged sword. While the company holds over 5,000 Bitcoin valued above $388 million, it has been forced to liquidate portions of its holdings -- $20 million in Q4 and $22 million in Q1 -- to cope with the volatile market conditions.
Bitcoin itself, although recently rising 1.6% to around $77,927, remains plagued by instability, sitting over 38% below its October zenith of $126,080. The crypto market's turbulence directly mirrors the challenges faced by firms like Nakamoto.
Fed Chair Warsh Enlists Conservative Economists for Bold Policy Shift
Fed Chair Kevin Warsh hires conservative economists, signaling a bold policy shift.
The stock split is crucial for Nakamoto to regain compliance with Nasdaq listing rules, which require a minimum share price of $1. The recent dip to an all-time low of $0.145 highlights the urgency of this move. Even a slight after-hours recovery of 2.6% leaves shares far from their previous heights.
This scenario underscores the volatility inherent in cryptocurrency markets, where rapid price swings can dramatically impact firms like Nakamoto. The company’s substantial Bitcoin holdings, once a strategic asset, have turned into a liability amid market downturns.
The decision to implement the reverse stock split followed a special shareholder meeting on May 8, reflecting the gravity of the situation. A stockholder-approved range allowed for flexibility, but the final choice of a 1-for-40 split indicates a decisive approach to meet regulatory requirements and stabilize share prices.
The crypto market's inherent instability presents a continuous challenge. While Bitcoin has shown some gains, its significant drop from last year's peak presents a cautionary tale for firms heavily invested in digital assets.
As Nakamoto moves forward with its reverse split, the market watches closely to see if this structural shift can address the deep-seated issues of plummeting share prices and the volatile nature of cryptocurrency investments.