Nakamoto to Implement 1-for-40 Reverse Split to Meet Nasdaq Rule

Nakamoto Inc., a publicly traded company focused on Bitcoin treasury and operations, is implementing a 1-for-40 reverse stock split effective Friday, May 22, in a bid to regain compliance with Nasdaq listing rules. The move comes as the company’s stock, trading under the ticker NAKA, has fallen well below the exchange’s minimum $1.00 bid price requirement.

The company received a notice from Nasdaq on December 10, stating its shares had traded below $1.00 for 30 consecutive business days. Nakamoto has until approximately June 8 to maintain a closing price at or above $1.00 for at least 10 consecutive trading sessions. Shareholders approved the reverse split at a special meeting on May 8, authorizing the board to select a ratio between 1-for-20 and 1-for-50.

The consolidation will reduce Nakamoto’s outstanding common shares from about 696.1 million to approximately 17.4 million. The company stated the action is intended to raise the per-share trading price to meet Nasdaq’s listing standards. The overall market capitalization and company fundamentals are not altered by the reverse split. Shareholders who would receive fractional shares will instead get a cash payment.