David Bailey's Nakamoto bitcoin treasury attempts stock recovery via reverse split after shares plunged 99.5%.
Nakamoto, the bitcoin treasury company led by David Bailey, has announced a 1-for-40 reverse stock split after its shares fell to new lows following a devastating 99.5% price decline. The reverse split will consolidate the company's outstanding shares from approximately 696 million down to roughly 17.4 million. Reverse splits are typically employed by companies seeking to artificially boost their share price to meet minimum listing requirements on stock exchanges or improve investor perception. However, they do not change the underlying value of the company or its holdings. Nakamoto positions itself as a bitcoin treasury firm, similar in concept to Michael Saylor's Strategy, accumulating bitcoin as its primary asset. The dramatic share price collapse raises questions about investor confidence in the company's business model and capital allocation strategy, despite bitcoin itself remaining a prominent asset in broader markets.
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