Bitcoin-focused asset management firm Nakamoto is gearing up for a reverse stock split in a bid to retain its listing on the Nasdaq after a dramatic fall in its share price. According to preliminary filings, the company intends to consolidate shares, thereby reducing their number while increasing their per-share value. The proposed ratio for the reverse split is expected to fall between 1-for-20 and 1-for-50. Recently, Nakamoto’s stock plummeted to just $0.22, marking a staggering 99% loss compared to its peak in May 2025.
Reverse split aims to meet Nasdaq requirements
The reverse stock split is designed to bring Nakamoto’s share price back above the crucial $1 mark, in line with Nasdaq’s minimum bid price requirement. Nasdaq mandates that listed companies hold their share price above $1 for a sustained period, or risk delisting from the exchange. While the total market value of the company remains unchanged, boosting the value per share allows Nakamoto to avoid falling afoul of these regulatory standards.
In practical terms, a reverse split means existing shareholders will see their numerous low-valued shares exchanged for fewer shares at a higher individual price. For instance, investors holding 20 shares at $0.20 each would end up with a single $4 share after a 1-for-20 reverse split, with the overall value of their holdings remaining intact. In a recent move as part of liquidity management, Nakamoto sold approximately 5% of its Bitcoin reserves, reducing its holdings to 5,058 BTC.
Share registration and future capital plans
In official documents submitted to the U.S. Securities and Exchange Commission, Nakamoto registered over 400 million shares, enabling current investors to resell them on the market. While this move does not raise immediate capital for the company, it could put downward pressure on share prices by increasing the pool of available stock for sale.
Additionally, Nakamoto has a pending application to offer up to $7 billion in securities under a shelf registration, allowing for flexible issuance of shares as market conditions dictate. Alongside this, the company has established an extra share sale program, giving it the option to rapidly make new shares available to investors, with the total value potentially reaching up to $5 billion. This approach affords Nakamoto agility in responding to shifting investor demand.
Actively managing its Bitcoin holdings on the balance sheet and developing cash flow strategies, Nakamoto has come under increased pressure amid heightened volatility in digital asset prices. Other digital asset firms, such as Strive Asset Management, have similarly turned to reverse stock splits in response to sustained declines in share value.
The recent retreat of Bitcoin’s price toward $70,000 has triggered a broad sell-off across digital asset companies’ stocks. A swift decline from October’s highs above $126,000 in spot bitcoin value has led to substantial market capitalization losses, particularly affecting publicly traded crypto firms like Nakamoto.
Confronted with sharp share price declines, Nakamoto continues to explore alternative funding measures, including reverse splits and new share issuance programs, in its effort to remain active on the Nasdaq exchange. Going forward, the company’s remaining Bitcoin assets and liquidity management strategies are expected to play a significant role in shaping its share performance.
Nakamoto’s ongoing financial maneuvers reflect the broader challenges faced by crypto-focused businesses in maintaining access to major stock exchanges when digital asset prices encounter major swings. As market volatility persists, maintaining compliance with listing requirements remains a top priority for firms such as Nakamoto.
The company’s efforts underscore its determination to weather challenging market conditions and uphold investor confidence, even as it navigates heightened regulatory scrutiny and fluctuating asset values. Investors and analysts alike will be monitoring how Nakamoto’s strategic initiatives impact its market standing in the months ahead.
Looking ahead, market observers are focusing on the company’s asset management tactics, particularly the ongoing handling of its significant Bitcoin reserves. The effectiveness of its capital measures and share restructuring will be closely watched as indicators of long-term viability within the volatile digital asset sector.
