Nakamoto Inc (Nasdaq: NAKA) has successfully completed its 1-for-40 reverse stock split effective at 12:01 a.m. ET on May 22, 2026, as announced in a Business Wire press release. The reverse split reduces outstanding common shares from approximately 696.1 million to 17.4 million, with the company's common stock expected to begin trading on a split-adjusted basis on the Nasdaq under the same symbol "NAKA" when markets open on May 22, 2026. The move was specifically approved by stockholders at a special meeting held on May 8, 2026, with the board selecting the 1-for-40 ratio from within the authorized range of 1-to-20 to 1-to-50 shares. The significance lies in the regulated wrapper, as Lightning Network integrations are common among pure-play crypto firms, but access through an OCC-chartered, nationally licensed custodian lowers the compliance barrier for banks, brokers, and fintech platforms that cannot or will not touch unregulated providers.
Nakamoto shares dropped by more than 17% to $0.14 immediately after the announcement before recovering to $0.16. As reported by The Block, NAKA is now down roughly 99.5% from the $29 highs seen last May when the company revealed a merger with KindlyMD and its subsequent bitcoin accumulation strategy. The reverse split will reduce outstanding common shares from about 696.1 million to 17.4 million, with holders receiving cash payments to cancel out any remaining fractional shares. The company's transfer agent, VStock Transfer, LLC, is acting as paying agent for the reverse split, with registered stockholders' book-entry accounts automatically adjusted to reflect the applicable ratio.
Earlier this month, Nakamoto reported a $238.8 million first-quarter net loss, driven mostly by a $102.5 million unrealized loss tied to bitcoin prices. According to The Block, the company currently holds 5,058 bitcoins worth nearly $391 million after selling 284 BTC during the first quarter to fund working capital needs. The company stands as the 20th-largest public bitcoin holder according to Bitcoin Treasuries data, slightly behind Anthony Pompliano's ProCap Financial.
Nakamoto launched an actively managed bitcoin derivatives strategy during the quarter to earn yield on its holdings, generating around 43 bitcoins in premiums before 40 BTC were later sold. As reported by The Block, the decision to implement the reverse split was approved by investors at a shareholders meeting earlier this month, where the board was weighing a split ratio between 1-to-20 and 1-to-50. CEO David Bailey expressed confidence in the company's long-term earnings power, stating the focus for the remainder of 2026 is execution and scaling operating businesses. The reverse split is intended to increase the per share trading price to regain compliance with Nasdaq's $1 minimum price requirement, positioning the company alongside other bitcoin treasury vehicles like Twenty One Capital and Strategy NAKA in the competitive landscape.
