Nakamoto Ltd is executing a 1-for-40 reverse stock split on May 22, 2026, consolidating 696.1 million outstanding shares down to approximately 17.4 million shares. According to reports, the company announced the split on May 20, 2026, effective at market open on May 22, 2026. The stock had fallen to $0.14 immediately after the announcement before partially recovering to $0.16. The split means every 40 shares of existing common stock are consolidated into a single new share, with the theoretical post-split opening price landing near $8.80, well above Nasdaq's $1.00 floor. The company trades on Nasdaq under the ticker NAKA and will retain that symbol after the split. NAKA price slipped 7.5% on Wednesday following the reverse stock split update, as reported by multiple sources, indicating investor skepticism about the effectiveness of the plan to boost stock price.
Shareholders approved the action at a Special Meeting on May 8, 2026, granting the board discretion to set the final ratio anywhere within a 1-to-20 to 1-to-50 range. As reported, the board elected the 1-for-40 ratio. The consolidation maintains authorized shares and par value unchanged, providing Nakamoto with substantial headroom for future equity issuances, ATM offerings, convertible notes, or share-based acquisitions without requiring additional shareholder votes to expand authorized capital. Holders of fractional shares created by the consolidation will receive cash payments. The reverse stock split is specifically intended to increase the per share trading price of the Company's common stock to regain compliance with the $1.00 minimum bid price requirement for continued listing on the Nasdaq Global Market, as the stock had fallen below $1 last October and remained below a dollar for about seven months.
Nakamoto reported a net loss of $238.8 million for Q1 2026, with half of the losses linked to the broader market drawdown that devalued its BTC holdings. The company sold about 300 BTC during the quarter to cover working capital needs, reducing its overall stash to 5,058 BTC valued at nearly $391 million. This positions Nakamoto as the 20th-largest public BTC holder according to BitcoinTreasuries data, ranking just behind Anthony Pompliano's ProCap Financial. During Q1 2026, Nakamoto also launched an actively managed BTC derivatives strategy to generate yield on its holdings, producing approximately 43 BTC in premiums before selling 40 BTC from those proceeds.
Paired with the reverse stock split is a deliberate pivot toward a Bitcoin Treasury model, positioning Nakamoto alongside the growing category of crypto equities designed to offer institutional investors regulated, exchange-listed exposure to BTC price performance without holding spot Bitcoin directly. According to reports, this strategic shift represents more than a defensive maneuver, representing a fundamental change in the company's approach to cryptocurrency investment and institutional accessibility. CEO David Bailey addressed the results in the company's earnings release, stating that "Our focus for the remainder of 2026 is execution — scaling our operating businesses, expanding revenue opportunities, and continuing to build durable shareholder value through disciplined capital allocation and long-term conviction in Bitcoin." The company's Bitcoin accumulation strategy aligns with broader market trends, as BTC accumulation by public companies surged 2.2% in the past 30 days to 1.23 million BTC, primarily driven by Michael Saylor's Strategy.
