Publicly traded Bitcoin treasury firm Nakamoto (NAKA) will conduct a 1-for-40 reverse stock split, effective May 22. The move aims to boost its share price to at least $1.00 to comply with Nasdaq listing rules. Shares recently hit an all-time low near $0.158 and are more than 99.5% off their 52-week high, following a $239 million Q1 loss tied to Bitcoin’s price decline.
The Bitcoin treasury firm Nakamoto announced it will implement a 1-for-40 reverse stock split following shareholder approval. The action is intended to help the firm achieve a share price of $1.00 to meet Nasdaq’s minimum bid price requirement.
Shares in the firm sank to a new all-time low last week after Nakamoto posted losses of around $239 million in Q1, largely due to Bitcoin’s price decline. The stock has fallen further, dropping 7.5% on Wednesday to trade near $0.158 and hitting a new low of $0.145 during the session.
Even with a 2.6% gain in after-hours trading, shares remain more than 99.5% off their 52-week high of $34.77. The firm’s decision follows a special May 8 shareholder meeting where an approval range of no less than 1-for-20 and no more than 1-for-50 was approved.
As a result, outstanding shares will decrease from 696.1 million to 17.4 million. The treasury firm maintains a balance of more than 5,000 Bitcoin, valued above $388 million.
It has sold its primary treasury vehicle in each of the last two quarters, first parting with around $20 million worth of BTC in Q4 before selling around $22 million in Q1. Bitcoin was recently trading around $77,927, up 1.6% in the last 24 hours.
The top crypto asset has gained over 2% in the last month but still sits more than 38% off its October all-time high of $126,080.
