Bitcoin Firm Nakamoto Plots 1-for-40 Stock Split Following 99% Price Plunge

Publicly traded Bitcoin treasury company Nakamoto (NAKA) has announced that it will implement a 1-for-40 reverse stock split, following shareholder approval, as it seeks to maintain compliance with Nasdaq listing rules.

The move is aimed at bringing the company’s share price back to at least $1.00 to meet the minimum bid price requirement.

Last week shares in the The company fell to a new low after Nakamoto posted losses of about $239 million in the first quarter, largely due to the decline in Bitcoin’s price. But the stock has since fallen even further, falling 7.5% on Wednesday to change hands near $0.158 and hitting a new all-time low of $0.145 at one point during that day’s trading session.

Even with shares up 2.6% in after-hours trading, they remain more than 99.5% off their 52-week high of $34.77.

The company’s decision to implement the reverse stock split follows a May 8 special shareholder meeting in which an approval of not less than 1 of 20 and not more than 1 of 50 was approved by shareholders, according to the company’s announcement.

As a result of the split, outstanding common shares will increase from 696.1 million shares to 17.4 million, with an expected effective date of Friday, May 22.

The Treasury, which holds a balance of more than 5,000 Bitcoin worth more than $388 million, has sold its main Treasury instrument in each of the past two quarters. First they said goodbye approximately $20 million worth of BTC in the fourth quarter before selling about $22 million in the first quarter, according to its recent earnings report.

Bitcoin, which is up 1.6% in the past 24 hours, recently changed hands around $77,927. The top crypto asset is up more than 2% over the past month of trading, but is still more than 38% below October’s all-time high of $126,080.