Nakamoto (NAKA) Stock Plunges to Record Low After 1-for-40 Reverse Split

Key Points

• NAKA shares plummeted over 10% during Wednesday’s trading session and have lost approximately 67% of their value year-to-date.
• A 1-for-40 reverse stock consolidation was executed on May 22 to maintain Nasdaq compliance.
• Outstanding shares decreased from approximately 696 million to roughly 17.4 million through the consolidation.
• Following the reverse split, NAKA reached a record low of $4.70.
• The stock has plummeted more than 99% from its May 2025 high of approximately $34.

Nakamoto (NAKA) continues its precipitous descent, dropping over 10% in Wednesday’s session following the completion of a 1-for-40 reverse stock consolidation executed last Friday. The shares touched a record low of $4.70 immediately after the split implementation, representing a nearly 67% year-to-date decline.

Nakamoto Inc., NAKA

Prior to the reverse consolidation, NAKA had already suffered a catastrophic decline exceeding 99% from its May 2025 peak of approximately $34 per share, bottoming out near $0.16 in April.

The consolidation took effect at 12:01 a.m. Eastern Time on May 22. According to the terms, shareholders received one new share for every 40 shares held. This action reduced the company’s outstanding shares from approximately 696 million to about 17.4 million.

Nakamoto confirmed that authorized shares and par value remained unaffected by the action, with shareholders maintaining their proportionate ownership and voting rights.

The reverse split was necessitated by a compliance notice from Nasdaq issued in December. The exchange notified Nakamoto that its shares had traded below the $1 minimum bid price requirement for 30 consecutive trading days, jeopardizing its continued listing.

The company currently maintains a treasury of 5,058 Bitcoin, positioning it as the 20th largest publicly traded company by BTC holdings according to Bitcoin Treasuries tracking data.

Market Sentiment Remains Bearish

Investor response to the reverse consolidation has been decidedly negative. Shares immediately dropped to an all-time low following the split’s implementation, indicating that market participants continue to worry about dilution concerns and financial stability.

CoinDesk had previously disclosed that Nakamoto registered over 400 million shares for potential resale and disclosed plans for up to approximately $7 billion in possible future securities offerings — revelations that have significantly dampened investor confidence.

Cointelegraph contacted NAKA for commentary but had not received a response at press time.

NAKA’s Performance Against Industry Competitors

NAKA has dramatically underperformed compared to other publicly traded Bitcoin treasury companies.

Strategy (MSTR), the industry’s largest public BTC holder, has gained approximately 2.5% year-to-date and currently trades around $155 per share.

Strive Asset Management (ASST) has surged over 20% YTD, most recently trading near $17.72.

Twenty-One Capital (XXI), which holds the second-largest public BTC treasury with 43,514 coins, has declined more than 17% YTD but maintains a price around $7.26.

Nakamoto reported a net loss during the first quarter despite achieving sixfold revenue expansion, as disclosed in earlier reporting.

The stock currently trades near record lows in the wake of the reverse split implementation.

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