Bitcoin Treasury firm Nakamoto ( NAKA ) is turning to a familiar Wall Street playbook as it looks to lift its pounding share price and stay on the Nasdaq.
The company is seeking approval for a “reverse stock split” that would combine shares in a ratio to be set between 1-to-20 and 1-to-50, according to a preliminary proxy filing (Schedule 14A), as it has seen a collapse in its share price to about $0.22. Prices are down about 99% from their peak in May 2025.
A reverse stock split reduces the number of shares outstanding while increasing the share price proportionally, for example by turning 20 shares at $0.20 into one share at $4. Although it does not change the underlying value of the company, 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.
Nakamoto recently sold about 5% of its bitcoin holdings, leaving it with 5,058 BTC, indicating 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 around $70,000 from over $126,000 in October.
Concurrent with the reverse split, the company registered in a Form S-3 filing more than 400 million shares for potential resale to existing investors. This does not raise new capital, but creates a large overhang that can weigh on the stock.
The company also has a shelf registration that allows up to about $7 billion in future securities issuance. This is separate from an at-market (ATM) program of up to approximately $5 billion, which would allow it to sell newly issued shares directly into the market over time.
