Nakamoto approved a 1-for-40 reverse stock split as NAKA shares continued their steep decline.
Bitcoin News
Nakamoto Inc. announced on May 20 that it will carry out a 1-for-40 reverse stock split, effective at market open on May 22. The company trades on Nasdaq under the ticker NAKA and will retain that symbol after the split.
The action is intended to bring the share price above Nasdaq's $1 minimum listing requirement.
The reverse split will reduce outstanding common shares from approximately 696.1 million to about 17.4 million. Holders of fractional shares created by the consolidation will receive cash payments. Shareholders approved the measure at a company meeting earlier in May 2026, where the board was authorized to set a ratio between 1-to-20 and 1-to-50.
Shares Down 99.5% From May 2025 Highs
NAKA dropped more than 17% to $0.14 immediately after the May 20 announcement before partially recovering to $0.16. The stock is down approximately 99.5% from its $29 peak in May 2025, when the company announced a merger with KindlyMD and unveiled its Bitcoin (BTC) treasury strategy.
Nakamoto reported a net loss of $238.8 million for Q1 2026. A $102.5 million unrealized loss tied to BTC prices was the largest contributor. The company sold 284 BTC during the quarter to cover working capital needs.
Nakamoto currently holds 5,058 BTC, valued at nearly $391 million. That positions it as the 20th-largest public BTC holder according to BitcoinTreasuries data. It ranks just behind Anthony Pompliano's ProCap Financial on that list.
During Q1 2026, Nakamoto also launched an actively managed BTC derivatives strategy to generate yield on its holdings. The strategy produced approximately 43 BTC in premiums. Nakamoto later sold 40 BTC from those proceeds.
CEO David Bailey addressed the results in the company's earnings release published in mid-May 2026. "Our focus for the remainder of 2026 is execution, scaling our operating businesses, expanding revenue opportunities, and continuing to build durable shareholder value through disciplined capital allocation and long-term conviction in Bitcoin," he said. The company has not indicated any change to its BTC accumulation approach.
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