Nakamoto to enact 1-for-40 reverse split to meet Nasdaq

Nakamoto Inc. will implement a 1-for-40 reverse stock split at market open Friday to meet Nasdaq’s $1 minimum listing requirement. The company will keep the NAKA ticker.

The consolidation will reduce outstanding common shares from about 696.1 million to roughly 17.4 million. Fractional shares created by the split will be cashed out. Investors approved the action at a shareholders meeting earlier this month after the board considered ratios between 1-for-20 and 1-for-50.

Nakamoto’s shares fell more than 17% to $0.14 immediately after the announcement and traded around $0.16 afterward. The stock is down about 99.5% from roughly $29 in May of last year, when the company disclosed a merger with KindlyMD and began accumulating bitcoin for its treasury.

The company reported a $238.8 million net loss for the first quarter, including a $102.5 million unrealized loss tied to bitcoin prices. Nakamoto held 5,058 bitcoins valued at nearly $391 million after selling 284 BTC during the quarter to fund working capital needs.

During the quarter Nakamoto launched an actively managed bitcoin derivatives strategy to earn yield on its holdings. The program generated about 43 bitcoins in premiums before the company sold 40 BTC later in the period. Bitcoin Treasuries data list Nakamoto as the 20th-largest public bitcoin holder, slightly behind ProCap Financial.

In the earnings release, CEO David Bailey wrote, “We remain highly confident in the long-term earnings power of the company we are building. Our focus for the remainder of 2026 is execution — scaling our operating businesses, expanding revenue opportunities, and continuing to build durable shareholder value through disciplined capital allocation and long-term conviction in bitcoin.”

The reverse split is intended to raise the consolidated share price above Nasdaq’s $1 threshold. If the post-split price does not meet the minimum, the company would typically be placed in Nasdaq’s cure period to regain compliance or face potential delisting procedures.