David Bailey’s Nakamoto Bets on 1-for-50 Reverse Split to Stay Nasdaq-Listed

David Bailey’s <a href="https://jpyxx.com/btc-usd/">bitcoin</a> holder Nakamoto is trying to stay on Nasdaq with a reverse stock splitMarkets

What to know:

  • The company is proposing a reverse stock split in a range of 1 for 20 to 1 for 50 in order to increase its share price and gain compliance with Nasdaq’s $1 minimum bid requirement.
  • Nakamoto has registered more than 400 million shares for resale and outlined up to roughly $7 billion in future securities issuance.

Nakamoto (NAKA), a company that holds Bitcoin, is using strategies commonly seen on Wall Street to try and boost its stock price and remain listed on the Nasdaq exchange.

The company is asking shareholders to approve a plan to combine its existing shares into fewer shares – likely between 1 share for every 20 and 1 share for every 50 – because its stock price has fallen dramatically to about $0.22. This represents a roughly 99% decrease from its highest price in May 2025.

A reverse stock split decreases the total number of a company’s shares but raises the price of each share accordingly—for example, 20 shares worth $0.20 each might become one share worth $4. This doesn’t change the company’s actual value, but it’s often done to meet Nasdaq’s requirement of a $1 minimum share price and prevent the stock from being removed from the exchange. Nasdaq requires listed companies to keep their share price above $1, or they risk being delisted.

Nakamoto recently sold around 5% of their Bitcoin, and now holds 5,058 BTC. This suggests they are actively managing their funds.

Several companies that hold bitcoin as part of their assets have made similar moves, like Strive Asset Management did earlier this year. Most stocks representing these bitcoin holdings have significantly decreased in value recently, falling alongside the price of Bitcoin, which has dropped from over $126,000 in October to around $70,000.

In addition to the reverse stock split, the company has registered over 400 million shares with the SEC, allowing current investors to potentially sell them. This won’t bring in any new money for the company, but it could create downward pressure on the stock price due to the increased number of shares available.

The company is prepared for future fundraising with two options. First, it can issue up to $7 billion in securities through a pre-approved registration statement. Second, it has an at-the-market program that lets it gradually sell up to $5 billion worth of new shares directly to the public.

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2026-04-10 12:01