bitcoin Treasury firm Nakamoto (NAKA) is turning to a familiar Wall Street playbook as it looks to lift its declining stock price and stay on the Nasdaq.
The company is seeking approval for a “reverse stock split” that would combine shares in a ratio to be set between 1 for 20 and 1 for 50, according to a preliminary proxy filing (Exhibit 14A), as it has seen a collapse in its share price to around $0.22. Prices are down about 99% from their May 2025 high.
A reverse stock split reduces the number of shares outstanding while increasing the share price proportionally, for example, converting 20 shares at $0.20 into one share at $4. While it does not change the underlying value of the company, it is commonly used to regain compliance with Nasdaq’s $1 minimum bid requirement and avoid delisting. Nasdaq requires publicly traded companies to maintain a minimum offering price of $1 per share, and companies that fail to guarantee this within a specified period risk being delisted.
Nakamoto recently sold around 5% of his bitcoin holdings, leaving him with 5,058 BTC, pointing to ongoing liquidity management.
Other bitcoin treasury companies have taken similar steps, including Strive Asset Management earlier this year. Most DAT shares have taken a beating in recent months, following the collapse of the BTC spot price to around $70,000 from over $126,000 in October.
In addition to the reverse split, the company, in a Form S-3 filing, registered more than 400 million shares for possible resale by existing investors. This doesn’t generate new capital, but it does create a large surplus that could weigh on the stock.
The company also has a registration that allows up to approximately $7 billion in future securities issuances. This is separate from an ATM program of up to about $5 billion, which would allow it to sell newly issued shares directly into the market over time.
