Nakamoto Inc's (NAKA) reverse stock split took effect on 22 May as the Bitcoin treasury company sought to preserve its Nasdaq listing after months of steep share price declines, putting its equity-funded Bitcoin (BTC) accumulation strategy under pressure.
Announced on 20 May, the move consolidated every 40 shares into one and reduced Nakamoto's outstanding share count from approximately 696.1mn shares to 17.4mn.
Nakamoto said the reverse split was intended to help the company regain compliance with Nasdaq's minimum $1 bid price requirement for continued listing.
While reverse stock splits do not directly dilute shareholders, they are often viewed as warning signs that companies are struggling to maintain investor confidence and access to public markets after steep share price declines.
The move comes as companies that adopted crypto treasury strategies over the past two years face their first prolonged crypto winter since adopting digital assets. Bitcoin has fallen about 40% from its October 2025 record high above $126,000, trading near $75,800 at 20:15 UTC on May 22.
Funding Bitcoin
Before pivoting to a Bitcoin treasury strategy, Nakamoto operated as healthcare provider KindlyMD, which offered pain management and healthcare services. In 2025, it rebranded as Nakamoto and adopted a Strategy-style model centred on raising capital to accumulate cryptocurrency.
Since announcing its Bitcoin treasury strategy in May 2025, Nakamoto secured roughly $540mn through a PIPE financing alongside about $200mn in convertible notes, while also issuing hundreds of millions of shares tied to acquisitions.
Treasury stress
Nakamoto disclosed in March that it sold about 284 BTC for roughly $20mn to support working capital and operations, one of the earliest signs that declining Bitcoin prices were beginning to pressure the treasury company.
Nakamoto acknowledged in its filing that the reverse split could reduce liquidity and might not lead to a sustained increase in the company’s share price.
The company's shares peaked at $22.64 following the treasury strategy announcement before falling to as low as $0.19 on 15 May. On its first trading day following the reverse split, the stock closed at $7.23 per share on Nasdaq, reflecting the adjusted share structure and a roughly 9% gain on the day.
