Bitcoin treasury company Nakamoto has moved forward with a 1-for-40 reverse stock split after receiving a Nasdaq warning over its prolonged share price decline.
Summary
- Nakamoto is carrying out a 1 for 40 reverse stock split after Nasdaq warned the company over its sub $1 share price.
- The company reported a $238.8 million Q1 net loss after Bitcoin price declines triggered more than $102 million in mark-to-market losses.
- Nakamoto sold 284 Bitcoin during the quarter to fund operations while its stock remains down more than 99% from last year’s peak.
According to a filing with the U.S. Securities and Exchange Commission, Nasdaq notified the company on Dec. 10 that its stock had traded below the $1 minimum bid requirement for 30 consecutive business days. Nakamoto has until June 8 to regain compliance by keeping its share price above $1 for at least 10 straight trading sessions.
Set to take effect on Friday, the reverse split will consolidate every 40 existing shares into one share. Nakamoto said the move will reduce its outstanding common shares from about 696.1 million to 17.4 million.
In its statement, the company said the reverse stock split was intended to raise the per-share trading price of its common stock and restore compliance with Nasdaq Global Market listing standards.
Shares of NAKA closed at $0.16 on Wednesday, down 7.5% on the day, according to Google Finance data. The stock has lost more than 99% of its value since May last year, shortly after Nakamoto announced its Bitcoin treasury strategy and merger with healthcare provider KindlyMD.
Bitcoin losses weigh on quarterly results
Earlier this month, Nakamoto reported $2.7 million in Q1 operating revenue following the completion of its acquisitions of BTC Inc. and UTXO Management on Feb. 20. The company said the acquisitions added media, advisory, and asset management operations to its Bitcoin-focused business model.
Revenue for the quarter included $1.1 million from Bitcoin treasury and derivatives activity, $0.8 million from media and information services, $0.2 million from asset management, and $0.5 million from healthcare operations. Nakamoto noted that the newly acquired businesses contributed revenue for only part of the quarter.
At the same time, the company posted a net loss of $238.8 million, compared with a $1 million loss during the same period last year. Nakamoto attributed much of the decline to non-cash and transaction-related expenses.
Company filings showed that a $102.5 million mark-to-market loss tied to Bitcoin price declines during the quarter weighed heavily on earnings. Another $107.7 million non-cash reduction was linked to a pre-acquisition call option, while transaction and integration expenses added roughly $8 million in costs.
By the end of March, Nakamoto held more than 5,000 Bitcoin with an aggregate fair value of about $345 million. The company said Bitcoin fell from $87,519 at the end of 2025 to $68,220 on March 31, which affected quarterly results.
Meanwhile, Nakamoto sold about 284 Bitcoin during the quarter to support working capital needs. Its derivatives strategy generated around 43 BTC in premium income, after which the company sold about 40 BTC.
Chief executive officer David Bailey said in the earnings release that the first quarter represented a transformational period for the company as it repositioned itself into a Bitcoin operating business. Bailey added that management remains focused on expanding revenue streams and scaling operations through disciplined capital allocation.
Pressure across the crypto treasury sector has also added to investor concerns. A report published by Standard Chartered last September said many crypto treasury firms were trading below the value of the digital assets held on their balance sheets.
While firms such as Strategy and Metaplanet have continued accumulating Bitcoin, several smaller treasury companies have slowed purchases or tapped their holdings to cover expenses and debt obligations.
One example is Genius Group, which liquidated its entire 84 Bitcoin treasury in February to help repay debt obligations.
Data from BitcoinTreasuries.Net currently ranks Nakamoto as the 20th largest corporate Bitcoin holder, with 5,058 Bitcoin on its balance sheet. The list places the company behind ProCap Financial, which holds 5,457 Bitcoin, while Strategy remains the largest corporate Bitcoin holder with more than 843,000 Bitcoin.
