Bitcoin Treasury firm Nakamoto (NAKA) is resorting to a familiar Wall Street playbook to try to drive its stock price down and stay on the Nasdaq.
The company is seeking approval for a “consolidation of shares” that would consolidate shares in a ratio set between 1:20 and 1:50, according to a preliminary proxy filing (Schedule 14A), as it has seen a collapse in its stock price to around $0.22. Prices are down about 99% from their May 2025 peak.
A reverse stock split reduces the number of shares outstanding while increasing the stock price proportionately, such as turning 20 shares at $0.20 into one share at $4. While this does not change the underlying value of the company, it is commonly used to restore compliance with Nasdaq’s $1 minimum bid requirement and avoid delisting. Nasdaq requires listed companies to maintain a minimum offering price of $1 per share, and companies that fail to ensure this within a specific period risk being delisted.
Nakamoto recently sold around 5% of his Bitcoin holdings, leaving him with 5,058 BTC, indicating continued liquidity management.
Other Bitcoin treasury companies have taken similar steps, including Strive Asset Management earlier this year. Most DAT stocks have taken a beating in recent months, following the collapse of the BTC spot price to around $70,000 from over $126,000 in October.
Along with the reverse split, the company, in a Form S-3, registered more than 400 million shares for potential resale by existing investors. This does not generate new capital, but creates a significant surplus which could weigh on the stock.
The company also has a shelf registration permitting up to approximately $7 billion in future securities issuances. This is separate from a go-to-market (ATM) program worth up to about $5 billion, which would allow it to sell newly issued shares directly into the market over time.
