Nakamoto’s Desperate Move: Will a Reverse Stock Split Save It from Nasdaq Delisting?

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David Bailey’s Nakamoto Eyes Reverse Stock Split to Avoid Nasdaq <a href="https://pricpr.com/deli">Delisting</a>

Nakamoto, a company that holds Bitcoin, is asking its shareholders to approve a reverse stock split. This is an attempt to meet the requirements for remaining listed on the Nasdaq stock exchange, following a significant drop in its share price and increasing challenges to its business.

Key Takeaways

  • Nakamoto stock currently trades at $0.21, as the company seeks a reverse stock split before June 8 to meet the Nasdaq $1 rule.
  • Recent deals by CEO David Bailey and outstanding 690 million shares have raised dilution fears, amid declining investor confidence.
  • Nakamoto sold 284 BTC in March but holds 5,058 BTC, with listing outcome shaping its next strategy.

Bitcoin Treasury Firm Nakamoto Moves to Lift Share Price

Nakamoto, a publicly traded bitcoin treasury firm, is preparing to seek shareholder approval for a reverse stock split as it races to avoid delisting from the Nasdaq.

The company’s stock is currently trading around 21 cents, which is significantly below the exchange’s requirement of $1 per share to remain listed. It has dropped roughly 79% from that $1 minimum and is down nearly 99% from its highest price of $34, as shown in a recent filing from April 7.

As an analyst, I’m tracking Nakamoto’s stock, and it’s currently facing potential delisting from the Nasdaq. Nasdaq rules state a company needs to keep its closing bid price above $1 for ten trading days in a row. Nakamoto received a warning in December 2025 and has until June 8th to get back into compliance. If they don’t, the stock could be moved to a less prominent market, or ultimately, be removed from trading on the Nasdaq altogether.

As part of my research, I’ve been following a company considering a reverse stock split to try and solve a current issue. Essentially, this means they’ll reduce the total number of shares available, but each individual share will then be worth more. Let’s say they do a 1-for-20 split – for every 20 shares someone owns, they’d end up with just one, but that single share would be twenty times more expensive. Importantly, this doesn’t change the total value of what you own, just how it’s divided.

In my research, I’ve found that while companies sometimes take steps to simply *meet* the requirements for staying on stock exchanges, investors often see these as superficial changes. They don’t really address the core problems a company might be facing, and are therefore often viewed with skepticism.

Nakamoto’s challenges extend beyond its share price. Earlier this year, CEO David Bailey used company stock to acquire BTC Inc. and UTXO Management, two firms he founded. The transaction doubled the number of shares outstanding, diluting existing shareholders and drawing criticism from market observers.

The company has also faced liquidity pressures. In March, Nakamoto disclosed the sale of 284 BTC to fund operations, highlighting the strain on firms that rely heavily on digital asset holdings while their equity valuations decline.

Despite the sale, Nakamoto retains a sizable bitcoin treasury. The company holds approximately 5,058 BTC, valued at around $365 million, according to current prices.

The company is planning a reverse stock split, which will combine its approximately 690 million shares into fewer shares. Despite this, the total number of shares the company is authorized to issue will remain at 10 billion, allowing it to issue more shares in the future if needed.

This possibility increases the chance that the value of current shares will decrease. The company admitted in its official documents that selling more stock could lower its price and diminish the worth of shares already owned by investors.

Company leaders explained the stock split as a way to keep their options open for the future. According to a recent statement, they believe approving the split will help them meet the minimum price requirement for their stock.

The situation underscores the growing tension among bitcoin treasury companies. While the strategy offers leveraged exposure to digital assets, it also leaves firms vulnerable when equity markets turn against them. For Nakamoto, the coming weeks may prove decisive in determining whether it can remain listed on a major U.S. exchange.

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2026-04-11 09:28