Nakamoto Inc. (Nasdaq: NAKA) announced a 1-for-40 reverse stock split on May 20, 2026, set to take effect at 12:01 a.m. ET on May 22, 2026.
Key Takeaways:
Nakamoto Inc. executes a 1-for-40 reverse split on May 22, 2026, to meet Nasdaq’s $1 minimum bid requirement.NAKA shares outstanding drop from 696.1 million to 17.4 million, while 10 billion authorized shares remain, raising dilution risk.CEO David Bailey’s bitcoin treasury firm holds 5,058 BTC but faces scrutiny over prior BTC sales and stock-based acquisitions.The move targets a specific regulatory threshold. Nasdaq Rule 5450(a)(1) requires listed companies to maintain a minimum $1.00 bid price. Nakamoto had been trading between $0.17 and $0.24 in recent months, roughly 99% below its May 2025 peak, and had until approximately June 8, 2026, to close at or above $1 for 10 consecutive trading days.
Total shares outstanding will fall from approximately 696.1 million to about 17.4 million. Authorized shares remain unchanged at 10 billion, a figure that leaves open the possibility of future share issuance and dilution.
No fractional shares will be issued. Shareholders who would otherwise receive a fraction will instead receive cash in lieu. VStock Transfer, LLC, the company’s transfer agent, will handle all book-entry adjustments automatically.
Warrants, equity awards, and exercise prices adjust proportionately under the terms of the split. The overall market capitalization and company fundamentals remain unchanged by the action.
Reverse stock splits are a common compliance tactic among microcap companies trading below Nasdaq’s minimum bid threshold. They raise the nominal price per share without changing total market value, underlying operations, or voting rights on a proportional basis.
