Nakamoto to cut shares by 97% via reverse split to avoid Nasdaq delisting

Nakamoto, a Bitcoin treasury firm, will execute a 1-for-40 reverse stock split starting May 22, reducing its shares from 696.1 million to 17.4 million to boost its stock price above Nasdaq's $1 minimum. The stock has traded below $1 for seven months, risking delisting. Despite a $238.8 million Q1 loss mainly due to Bitcoin devaluation, CEO David Bailey remains optimistic about growth and shareholder value in 2026. The stock price fell 7.5% after the announcement, and it remains uncertain if the split will restore Nasdaq compliance.