Bitcoin treasury company Nakamoto Inc. (NASDAQ: NAKA) announced a 1-for-40 reverse stock split, selecting a ratio from within a previously approved range of 1-for-20 to 1-for-50, Wednesday.
The reverse split is tied to Nasdaq’s $1 minimum bid price requirement
As of early April, shares were trading around $0.21 to $0.22, according to the company’s preliminary proxy filing and related reporting. Nasdaq sent Nakamoto a deficiency notice in December 2025 after shares failed to close above $1 for 30 consecutive business days. Under Nasdaq rules, the company had until June 8, 2026 to regain compliance by closing at or above $1 for 10 straight trading days.
The board laid out the reverse split proposal at a virtual special meeting on May 8, with the company’s filing saying approval “would provide the company with additional flexibility to address the minimum bid price requirement if necessary.” Based on the proxy’s March 31 record date, Nakamoto had 690,018,254 shares outstanding. A 1-for-40 reverse split would reduce that count to roughly 17.3 million shares, before rounding and any later issuance. The authorized share count, however, stays at 10 billion, leaving substantial capacity for future stock issuance.