Nakamoto Pulls the Reverse Split Lever: When HODLing Alone Can't Save You From Nasdaq

Bitcoin treasury firm Nakamoto (NAKA) is tapping into Wall Street's oldest trick to prop up its battered share price and avoid getting shown the door by Nasdaq. The company is seeking shareholder approval for a reverse stock split at a ratio between 1-for-20 and 1-for-50, per a preliminary proxy filing, after its share price cratered to around $0.22—roughly 99% below its May 2025 peak.

For those unfamiliar with this particular financial sorcery: a reverse split reduces the number of shares outstanding while boosting the price proportionally. Think 20 shares at $0.20 becoming a single share at $4. It's pure math, no actual value created. But it does help companies creep back above Nasdaq's $1 minimum bid price requirement, which is kind of important if you want to keep your ticker.

Nakamoto has also been quietly trimming its Bitcoin bag, recently unloading about 5% of its holdings and now sitting on 5,058 $BTC. Looks like someone's prioritizing liquidity over long-term conviction these days. Shocker given the $BTC price situation.

The broader Bitcoin treasury company cohort hasn't exactly been having a great time. Most DAT stocks have gotten absolutely wrecked, mirroring the collapse in Bitcoin's spot price from over $126,000 in October down to the current $70,000 neighborhood.

In addition to the reverse split, Nakamoto filed a Form S-3 registering more than 400 million shares for potential resale by existing holders. This doesn't raise fresh capital—instead, it's essentially a looming overhang waiting to pressure the stock further. The company also has a shelf registration on deck for up to roughly $7 billion in potential future issuances, separate from an at-the-market program of up to about $5 billion that would let it drip newly printed shares into the market over time.

So yeah, Nakamoto's running the full reverse split playbook while keeping the ATM machine warm. When your stock is down 99%, apparently you try everything.