Bitcoin treasury company Nakamoto has moved ahead with a 1-for-40 reverse stock split after receiving a Nasdaq warning over its prolonged share price decline. The Nasdaq notified the firm on Dec. 10 that its stock had traded below the $1 minimum bid requirement for 30 consecutive business days, giving Nakamoto until June 8 to regain compliance by keeping its share price above $1 for 10 straight trading sessions.
Reverse split mechanics and market reaction
The reverse split took effect Friday, consolidating every 40 existing shares into one. Nakamoto said the move will reduce outstanding common shares from roughly 696.1 million to 17.4 million, aiming to lift the per-share trading price and restore compliance with Nasdaq Global Market listing standards. NAKA shares closed at $0.16 on Wednesday, down 7.5% on the day. The stock has lost more than 99% of its value since May last year, shortly after the company announced its Bitcoin treasury strategy and merger with healthcare provider KindlyMD.
Q1 results: Bitcoin drags net loss to $238.8 million
Earlier this month, Nakamoto reported $2.7 million in Q1 operating revenue after closing acquisitions of BTC Inc. and UTXO Management on Feb. 20. Revenue included $1.1 million from Bitcoin treasury and derivatives, $0.8 million from media and information, $0.2 million from asset management, and $0.5 million from healthcare. However, the company posted a net loss of $238.8 million, versus a $1 million loss a year ago. A $102.5 million mark-to-market loss tied to Bitcoin price declines weighed heavily on earnings, along with a $107.7 million non-cash reduction from a pre-acquisition call option and roughly $8 million in transaction costs.
Bitcoin holdings and CEO comments
By the end of March, Nakamoto held 5,058 Bitcoin with an aggregate fair value of about $345 million. Bitcoin fell from $87,519 at end-2025 to $68,220 on March 31, hitting quarterly results. To fund working capital, Nakamoto sold about 284 BTC during the quarter, while its derivatives strategy generated around 43 BTC in premium income. CEO David Bailey called Q1 a transformational period as the company repositioned into a Bitcoin operating business, adding that management focuses on expanding revenue streams through disciplined capital allocation.
Pressure across crypto treasury sector
Standard Chartered noted last September that many crypto treasury firms trade below the value of digital assets on their balance sheets. While Strategy and Metaplanet keep accumulating, several smaller firms have slowed purchases or sold holdings to cover expenses. Genius Group liquidated its entire 84-Bitcoin treasury in February to repay debt. BitcoinTreasuries.Net ranks Nakamoto as the 20th largest corporate Bitcoin holder with 5,058 BTC, behind ProCap Financial (5,457 BTC), while Strategy leads with over 843,000 BTC.