Bitcoin-focused asset management company Nakamoto is preparing for a reverse stock split in order to continue to be listed on Nasdaq after the huge loss in value of its shares. According to the company’s preliminary application documents, the plan is to reduce the number of shares and increase the price by merging the shares. Accordingly, the reverse split ratio was brought to the agenda to be between 20 to 1 and 50 to 1. Nakamoto shares have fallen to $0.22 in recent weeks. This price indicates a loss of approximately 99 percent compared to the peak in May 2025.
Effort to stay on Nasdaq through share split
Although the reverse stock split does not change the company’s total market value, it aims to meet Nasdaq’s $1 floor price requirement by increasing the price per share. Nasdaq requires companies to raise their share prices above $1 within a certain period of time. Otherwise, the risk of being delisted from the stock market comes into play.
In the reverse split example, multiple shares with lower prices are converted into a single more expensive share. For example, by combining 20 $0.20 shares, the total value of investors remaining with one $4 share remains unchanged. Nakamoto management recently put up approximately 5 percent of its Bitcoin assets for sale and reduced the remaining amount of BTC to 5,058. This sale took place within the framework of the company’s liquidity management.
New share sales and future plans
In official documents filed with the U.S. Securities and Exchange Commission, Nakamoto registered over 400 million shares for existing investors to offer for resale. The transaction does not directly provide new funds to the company, but it could create significant selling pressure.
The company also has an application for the issuance of securities worth approximately $7 billion, with a registration system waiting on the shelf. Apart from this, there is also an additional sales program that allows the market to quickly introduce new shares over time and could reach approximately $5 billion in total. The program in question allows the company to instantly issue shares to the market according to its demands.
Nakamoto, which actively holds Bitcoin on its balance sheet and develops cash management strategies, has been under serious pressure due to the recent sharp fluctuations in digital asset prices. Similarly, other digital asset companies such as Strive Asset Management have also recently resorted to reverse stock splits.
In recent months, especially the decline in the price of Bitcoin to 70 thousand dollars has created a downward wave in the shares of many digital asset companies. This rapid decline in the spot bitcoin price, which reached over 126 thousand dollars in October, led to significant losses, especially in the market values of publicly traded crypto companies.
Evaluating alternative financing methods against the sharp decline in its shares, Nakamoto is seeking to continue its path in the stock market with both reverse division and different share issuance opportunities. Finally, the company’s holdings of bitcoin and the liquidity policies it implements are expected to have an impact on stock performance in the future.
