Nakamoto Implements Reverse Stock Split to Maintain Nasdaq Listing
- Nakamoto is executing a shareholder-approved 1-for-40 reverse stock split on Friday to avoid delisting from the Nasdaq.
- The company received a warning on December 10 that its stock price had been below $1 for over 30 consecutive business days.
- Following the split, total common shares will decrease from 696.1 million to 17.4 million.
- Nakamoto reported a $238.8 million net loss in Q1, largely due to a mark-to-market loss on its Bitcoin treasury.
- The company’s share price closed at 16 cents, down more than 99% from last May.
- Currently, Nakamoto holds 5,058 Bitcoin, making it the 20th largest Bitcoin treasury company.
The reverse stock split aims to boost Nakamoto’s share price above $1 and comply with Nasdaq requirements by June.
Nakamoto’s significant losses and drastic decline in share value highlight challenges faced by cryptocurrency treasury companies.
With a reported net loss of $238.8 million in Q1, Nakamoto’s financial struggles are evident as it seeks to stabilize its operations through this reverse split strategy.
