Facing a severe decline in its stock price, treasury firm Nakamoto (NAKA), associated with David Bailey and holding bitcoin, is exploring a Wall Street strategy to remain on the Nasdaq. The company plans to implement a reverse stock split, combining shares at a ratio ranging from 1-for-20 to 1-for-50 as detailed in a preliminary proxy filing (Schedule 14A). This move comes after its share price plummeted to approximately $0.22, marking a decline of nearly 99% since May 2025.
A reverse stock split reduces the total number of shares while raising their individual value proportionally. For instance, it could convert 20 shares priced at $0.20 each into one share valued at $4. Although this action does not alter the company’s fundamental worth, it is frequently used to meet Nasdaq’s minimum bid price requirement of $1 per share and avoid delisting.
Nakamoto has recently liquidated about 5% of its bitcoin holdings, now possessing 5,058 BTC, indicating efforts in liquidity management. Similar actions have been observed among other bitcoin treasury firms, like Strive Asset Management earlier this year. Shares from most DAT companies have similarly suffered due to a significant drop in Bitcoin’s spot price, which has decreased from over $126,000 in October to approximately $70,000.
In addition to the reverse stock split, Nakamoto registered more than 400 million shares for potential resale by current investors through a Form S-3 filing. This step does not generate new capital but introduces a substantial overhang that could negatively impact its stock price. Moreover, the company holds a shelf registration allowing future securities issuance up to roughly $7 billion. It also maintains an at-the-market (ATM) program with a capacity of about $5 billion, enabling the sale of newly issued shares directly into the market over time.