Bitcoin treasury firm Nakamoto seeks a 1-for-40 reverse stock split to regain Nasdaq compliance after a 99% price plunge.
Nakamoto, a Bitcoin treasury company listed on Nasdaq, is planning a 1-for-40 reverse stock split following a dramatic 99% collapse in its share price. The move is designed to consolidate the company's outstanding shares, artificially boosting the per-share price to meet Nasdaq's minimum listing requirements, which typically demand a share price of at least $1. Falling below this threshold risks delisting from the exchange, which would significantly limit the company's access to public capital markets. Reverse stock splits are a common but often controversial tool used by struggling companies to maintain exchange compliance. They do not change the overall market capitalization of the company, but reduce the total number of shares in circulation. Nakamoto's situation highlights the volatility risks faced by firms that adopt aggressive Bitcoin treasury strategies, particularly when broader market conditions turn unfavorable.
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