Bitcoin firm faces delisting pressure
Nakamoto, the bitcoin treasury company, is taking what some might call a desperate measure. They’re proposing a reverse stock split to keep their shares trading on Nasdaq. The stock has fallen to about $0.22, which is down nearly 99% from its peak in May 2025. That’s a pretty dramatic drop, even for the volatile crypto space.
Nasdaq has this rule about maintaining a $1 minimum bid price. Companies that can’t meet that requirement face delisting. So Nakamoto wants to combine shares at a ratio between 1-for-20 and 1-for-50. Basically, they’d take 20 to 50 shares at the current low price and turn them into one share at a higher price. It doesn’t change the company’s actual value, but it might keep them on the exchange.
Liquidity moves and shareholder concerns
What’s interesting is that Nakamoto recently sold about 5% of its bitcoin holdings. They still have 5,058 BTC, but that sale suggests they’re managing liquidity. Bitcoin’s price has dropped from over $126,000 in October to around $70,000, so maybe they needed cash. Or perhaps they’re preparing for something else.
The company also registered more than 400 million shares for potential resale by existing investors. This doesn’t raise new capital for the company, but it creates what traders call an “overhang.” Basically, there are now a lot of shares that could hit the market, which might keep the price down even if the reverse split goes through.
Future financing options
There’s also this shelf registration for up to $7 billion in future securities. That’s separate from an at-the-market program of about $5 billion. These are tools that would let Nakamoto sell new shares directly into the market over time. It gives them flexibility, but it also means more potential dilution for current shareholders.
Other bitcoin treasury firms have taken similar steps. Strive Asset Management did something like this earlier in the year. Most of these bitcoin-related stocks have taken a beating recently, tracking the decline in bitcoin’s spot price.
I think what’s happening here is pretty straightforward. Nakamoto needs to stay listed on Nasdaq to maintain credibility and access to capital markets. The reverse split is a short-term fix for the listing requirement. But the bigger questions remain about their bitcoin strategy and how they’ll navigate this difficult market.
The share registration and shelf offerings suggest they might be preparing for more fundraising. Or maybe they’re just keeping their options open. Either way, current shareholders should probably pay attention to these developments. A reverse split can sometimes be a red flag, though it’s not always a sign of deeper problems.
What happens next depends on shareholder approval and market conditions. If bitcoin prices recover, maybe some of these pressures ease. But for now, Nakamoto seems focused on staying compliant with exchange rules while managing their substantial bitcoin treasury in a challenging environment.
