Overview
- The company, which set the split to take effect Friday, will consolidate every 40 existing shares into one and cut outstanding shares to about 17.4 million.
- Nasdaq warned Nakamoto after its stock traded under $1 for 30 business days and the company must show a share price above $1 for 10 consecutive trading sessions by the June 8 deadline to avoid delisting.
- Nakamoto reported a $238.8 million net loss in Q1 driven largely by a $102.5 million mark-to-market Bitcoin hit and sold about 284 BTC during the quarter to fund operations while holding roughly 5,058 BTC on its balance sheet.
- A reverse split does not change market capitalization or the company’s underlying finances and may reduce liquidity, create cash payments for fractional shares, and heighten short-term volatility.
- The move buys time but does not resolve sector pressure on crypto-treasury firms, and investors should watch post-split trading volume, potential further Bitcoin sales for cash, and management’s operational progress.