Nakamoto, a Bitcoin treasury company, is executing a 1-for-40 reverse stock split Friday to prevent Nasdaq delisting after its share price collapsed to 16 cents, down 99% from $25 in May 2025. The move compresses 696.1 million shares into 17.4 million, artificially lifting the stock above the $1 minimum bid price required for continued listing. Nakamoto has until June 8 to maintain $1+ pricing for 10 consecutive trading days or face removal from the exchange.
Bitcoin Treasury Sector in Freefall
Nakamoto’s decline mirrors broader deterioration across publicly traded Bitcoin treasury firms. The company holds 5,058 BTC but recorded a $102 million mark-to-market loss in Q1 2026 as Bitcoin fell 23% during the quarter. Despite a 500% quarter-over-quarter revenue increase, Nakamoto posted a $238.8 million net loss and sold 284 BTC in March to cover operational expenses. Rival treasury companies have adopted similar liquidation strategies; Genius Group sold 84 BTC in February. BTCS Chief Strategy Officer Wojciech Kaszycki warned in March that “treasury companies will likely start merging and consolidating this year to stay afloat.”
Reverse Split Math Masks Deeper Problems
The 1-for-40 ratio, approved by shareholders on May 8, theoretically lifts Nakamoto’s stock from 16 cents to roughly 64 cents post-split. This falls short of the $1 threshold without additional gains. Nasdaq issued its formal delisting warning December 10, triggering the 180-day compliance window that expires June 8. The reverse split is a mechanical fix: it reduces share count but does not address underlying losses or Bitcoin price exposure. Nakamoto ranks 20th among Bitcoin treasuries by holdings, far behind Strategy’s 843,000+ BTC and ProCap Financial’s 5,457 BTC.
Consolidation Pressure Intensifies
Nakamoto merged with healthcare provider KindlyMD in May 2025, a diversification strategy that has not stabilized share price. The reverse split signals management intends to remain public, but the narrow compliance window leaves no margin for error. If Bitcoin price stagnates or declines further, even the reduced share count may not sustain $1+ pricing. Other treasury firms face identical pressure, creating conditions for forced mergers or restructurings across the sector.
Next 18 Days Critical
Execution is Friday. Nakamoto must post 10 consecutive closes above $1 by June 8 to maintain Nasdaq listing. The company has provided no guidance on post-split strategy or Bitcoin sale plans. If delisting occurs, shares migrate to over-the-counter markets, reducing liquidity and institutional access. The reverse split buys time but does not solve the core problem: Bitcoin treasury companies are burning capital faster than they accumulate assets.
