Nakamoto Eyes Reverse Split to Retain Nasdaq Listing Status

TLDR

• Nakamoto plans a reverse stock split between 1-for-20 and 1-for-50.
• The company aims to meet Nasdaq’s $1 minimum bid requirement.
• Shares have dropped about 99% from the May 2025 peak.
• The firm sold 5% of holdings and now holds 5,058 BTC.
• Nakamoto registered 400 million shares for potential resale.

Nakamoto has taken steps to stabilize its listing status as its share price trades below Nasdaq requirements. The firm has proposed a reverse stock split while managing bitcoin holdings and liquidity pressures. The move comes as its stock price hovers near $0.22 after a steep decline from its 2025 peak.

David Bailey-Linked Nakamoto Seeks Nasdaq Compliance

David Bailey’s Bitcoin-focused firm Nakamoto has filed for a reverse stock split to maintain its Nasdaq listing. The company aims to combine shares at a ratio between 1-for-20 and 1-for-50. This action would raise the per-share price above the $1 minimum bid threshold required by Nasdaq.

Nakamoto’s stock has dropped nearly 99% from its May 2025 high. As a result, the company faces pressure to meet listing standards within a set period. Nasdaq rules require companies to maintain a minimum bid price or risk removal from the exchange.

The firm also filed a Schedule 14A proxy to seek shareholder approval for the reverse split. This filing outlines the proposed ratio range and explains its intended impact. The company has not yet set a final ratio, pending approval and market conditions.

Bitcoin Holdings and Share Supply Strategy

Nakamoto recently sold about 5% of its Bitcoin holdings as part of liquidity management. The firm now holds 5,058 BTC after the sale. This adjustment reflects efforts to manage cash flow during declining market conditions.

Bitcoin’s price has fallen to around $70,000 from over $126,000 in October. As a result, treasury firms holding bitcoin have faced declining valuations. Other companies have taken similar actions to stabilize balance sheets.

The company also registered over 400 million shares for potential resale through a Form S-3 filing. This registration allows existing investors to sell shares but does not raise new capital. However, the move could create selling pressure in the market.

Nakamoto maintains a shelf registration allowing up to $7 billion in future securities issuance. This structure enables the company to raise funds when conditions allow. It also operates an at-the-market program worth up to $5 billion.

The at-the-market program permits the firm to sell newly issued shares gradually into the market. This approach offers flexibility in the timing and pricing of share sales. The filings show the company’s focus on maintaining liquidity and exchange compliance.

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