David Bailey’s bitcoin holder Nakamoto is trying to stay on Nasdaq with a reverse stock split
The stock has plunged roughly 99% from its May 2025 peak as pressure builds on the bitcoin treasury firm.
What to know:
- The company is proposing a reverse stock split in a range of 1 for 20 to 1 for 50 in order to increase its share price and gain compliance with Nasdaq’s $1 minimum bid requirement.
- Nakamoto has registered more than 400 million shares for resale and outlined up to roughly $7 billion in future securities issuance.
A reverse stock split reduces the number of shares outstanding while increasing the share price proportionally, for example turning 20 shares at $0.20 into one share at $4. While it does not change the company’s underlying value, it is commonly used to regain compliance with Nasdaq’s $1 minimum bid requirement and avoid delisting. Nasdaq mandates listed companies to maintain a minimum bid price of $1 per share, and firms that fail to ensure that within a specific period risk being delisted.
Nakamoto recently sold about 5% of its bitcoin holdings, leaving it with 5,058 BTC, pointing to ongoing liquidity management.
Other bitcoin treasury firms have taken similar steps, including Strive Asset Management earlier this year. Most DAT shares have taken a beating in recent months, tracking the collapse in BTC’s spot price to roughly $70,000 from over $126,000 in October.
