Overview
- The reverse split took effect on Friday, May 22, and will convert every 40 existing shares into one share, cutting outstanding stock from about 696.1 million to roughly 17.4 million.
- Nakamoto reported a $238.8 million net loss for Q1 driven by roughly $102.5 million in mark-to-market Bitcoin losses and said it sold about 284 BTC during the quarter while holding roughly 5,058 BTC at March 31.
- The company implemented the split after shareholders on May 8 authorized a flexible reverse-split range of 1-for-20 to 1-for-50 and after Nasdaq notified Nakamoto that the stock had traded below the $1 minimum bid price.
- The reverse split is a mechanical change that does not alter Nakamoto’s market value but can reduce liquidity, produce fractional-share cash-outs for small holders, and briefly make the stock eligible for funds barred from penny stocks.
- Nakamoto’s move mirrors stress across crypto treasury firms, where price volatility has forced some companies to sell Bitcoin to cover operations and left other treasuries trading below the value of their digital assets.