Bitcoin treasury company Nakamoto has approved a 1-for-40 reverse stock split after receiving a Nasdaq warning over its prolonged share price decline. According to a filing with the U.S. Securities and Exchange Commission, Nasdaq notified the company on December 10 that its stock had traded below the $1 minimum bid requirement for 30 consecutive business days. Nakamoto has until June 8 to regain compliance by keeping its share price above $1 for at least 10 straight trading sessions. The reverse split, set to take effect on Friday at 12:12 a.m. ET, will consolidate every 40 existing shares into one share, reducing the company's outstanding common shares from approximately 696.1 million to 17.4 million. The company announced this finalized split on May 20, with the symbol "NAKA" remaining the same but receiving a new CUSIP number of 49457M205.
Earlier this month, Nakamoto reported $2.7 million in Q1 operating revenue following the completion of acquisitions of BTC Inc. and UTXO Management on February 20. The company's revenue breakdown included $1.1 million from Bitcoin treasury and derivatives activity, $0.8 million from media and information services, $0.2 million from asset management, and $0.5 million from healthcare operations. However, the company posted a net loss of $238.8 million, compared with a $1 million loss during the same period last year. According to company filings, a $102.5 million mark-to-market loss tied to Bitcoin price declines during the quarter weighed heavily on earnings, while another $107.7 million non-cash reduction was linked to a pre-acquisition call option.
By the end of March, Nakamoto held more than 5,000 Bitcoin with an aggregate fair value of approximately $345 million. The company sold about 284 Bitcoin during the quarter to support working capital needs, while its derivatives strategy generated around 43 BTC in premium income before selling about 40 BTC. Bitcoin fell from $87,519 at the end of 2025 to $68,220 on March 31, which affected quarterly results. As reported by BitcoinTreasuries.Net, Nakamoto currently ranks as the 20th largest corporate Bitcoin holder with 5,058 Bitcoin on its balance sheet.
Shares of Nakamoto closed at $0.16 on Wednesday, down 7.5% on the day, according to Google Finance data. The stock has lost more than 99% of its value since May last year, shortly after Nakamoto announced its Bitcoin treasury strategy and merger with healthcare provider KindlyMD. CEO David Bailey, who served as Bitcoin Magazine CEO and was Donald Trump's crypto advisor during the 2024 presidential campaign, founded Nakamoto Holdings which merged with KindlyMD in May 2025. Despite the company's transformation into a Bitcoin operating business, the stock has struggled to maintain any meaningful price recovery, with its shares never approaching the $1 minimum threshold during the critical compliance period.
