Nakamoto Pursues Reverse Stock Split to Avert Nasdaq Delisting

Nakamoto (NAKA) has filed a preliminary proxy statement seeking a reverse stock split to maintain its listing on the Nasdaq exchange. The company is proposing a split ratio between 1-for-20 and 1-for-50 to artificially inflate its share price, which has plummeted to approximately $0.22. The equity collapse represents a nearly 99% drop from the company's peak in May 2025. This decline mirrors a broader downturn in the cryptocurrency market, with Bitcoin's spot price retreating to roughly $70,000 from a high of over $126,000 in October. To manage liquidity, Nakamoto recently liquidated approximately 5% of its Bitcoin reserves, leaving the firm with a remaining balance of 5,058 BTC. This strategy aligns with actions taken by other Bitcoin treasury entities, such as Strive Asset Management, as they navigate volatile asset prices. Beyond the split, the company has registered over 400 million shares for potential resale by existing investors via a Form S-3 filing. While this does not generate new capital, it creates a significant supply overhang that may continue to weigh on the stock price. Nakamoto is also positioning itself for future capital raises through a $7 billion shelf registration and a $5 billion 'at-the-market' (ATM) program, which would allow the firm to issue and sell new shares directly into the market over time.