Nakamoto sets 1-for-40 reverse stock split as Nasdaq deadline nears

Blockspace Staff

Wed, May 20, 2026 astatine 8:55 AM CDT 1 min read

Bitcoin treasury institution Nakamoto Inc. (NASDAQ: NAKA) announced a 1-for-40 reverse banal split, selecting a ratio from wrong a antecedently approved scope of 1-for-20 to 1-for-50, Wednesday.

The reverse divided is tied to Nasdaq’s $1 minimum bid terms requirement. As of aboriginal April, shares were trading astir $0.21 to $0.22, according to the company’s preliminary proxy filing and related reporting.

Nasdaq sent Nakamoto a deficiency announcement successful December 2025 aft shares failed to adjacent supra $1 for 30 consecutive concern days. Under Nasdaq rules, the institution had until June 8, 2026 to regain compliance by closing astatine oregon supra $1 for 10 consecutive trading days. The committee laid retired the reverse divided connection astatine a virtual peculiar gathering connected May 8, with the company’s filing saying support “would supply the institution with further flexibility to code the minimum bid terms request if necessary.”

Based connected the proxy’s March 31 grounds date, Nakamoto had 690,018,254 shares outstanding. A 1-for-40 reverse divided would trim that number to astir 17.3 cardinal shares, earlier rounding and immoderate aboriginal issuance. The authorized stock count, however, stays astatine 10 billion, leaving important capableness for aboriginal banal issuance.

The divided lifts the nominal stock terms and widens the spread betwixt existent shares outstanding and what the institution is inactive permitted to issue. The proxy acknowledged the hazard directly: “The issuance of further shares would beryllium dilutive to our existing stockholders and whitethorn origin a diminution successful the trading terms of our Common Stock.”