Nakamoto's bold 1-for-40 reverse split aims to revive collapsing stock
Nakamoto (NAKA) is moving ahead with a 1-for-40 reverse stock split to boost its share price. The company’s stock recently plunged to an all-time low of $0.145, down over 99.5% from its 52-week peak. Shareholders gave the green light for the measure earlier this month. The reverse split will take effect on May 22, slashing outstanding shares from 696.1 million to just 17.4 million. Nakamoto’s goal is to lift the share price back above $1.00. Shareholders had already approved a split ratio between 1-for-20 and 1-for-50 during a vote on May 8.
Meanwhile, Bitcoin’s price has shown slight recovery, rising 1.6% in the last 24 hours to around $77,927. Over the past month, it has climbed over 2%, though it remains 38% below its October peak. Nakamoto’s financial struggles continue, with Q1 losses hitting approximately $239 million, largely due to Bitcoin’s decline.
The company has also sold off around $42 million worth of Bitcoin in the last two quarters. Despite these moves, its stock performance has yet to show signs of improvement. The reverse split will drastically reduce the number of shares in circulation. If successful, it could help Nakamoto meet listing requirements and stabilise its stock price. The company’s next steps will depend on market reaction and Bitcoin’s ongoing volatility.
