Nakamoto shares drop 10% to $4.70 after 1-for-40 split

Shares of Nakamoto (NAKA) plunged more than 10% on Wednesday, hitting a record low of $4.70, days after the Bitcoin treasury company executed a 1-for-40 reverse stock split to maintain its listing on the Nasdaq exchange. The stock has declined approximately 67% year-to-date and has plummeted more than 99% from its peak of around $34 per share in May 2025.

The reverse stock split took effect on May 22, consolidating the company's outstanding shares from approximately 696 million to about 17.4 million. According to the company, the action was necessary after Nasdaq issued a compliance warning in December, notifying Nakamoto that its shares had traded below the $1 minimum bid price requirement for 30 consecutive days, which jeopardized its listing status. The company stated the reverse split did not change the number of authorized shares or the stock's par value, and shareholders retained their proportionate ownership and voting rights.

Despite holding a treasury of 5,058 Bitcoin, ranking it as the 20th largest publicly traded company by BTC holdings according to Bitcoin Treasuries data, investor sentiment remains bearish. The immediate drop to an all-time low following the split...