Nakamoto's desperate reverse split fails to mask Bitcoin-tied losses
Nakamoto (NAKA), a company tied to Bitcoin’s performance, has announced a major stock restructuring. The move comes as its shares hit a record low of $0.145 this week. Meanwhile, Bitcoin itself has shown slight recovery, rising 1.6% in the last day. The company’s struggles deepened in early 2024. Nakamoto reported losses of around $239 million in the first quarter, largely due to Bitcoin’s ongoing price drop. Despite a recent uptick, Bitcoin remains over 38% below its October 2021 peak, though it currently trades near $77,927.
Nakamoto also sold significant Bitcoin holdings in recent months. In Q4 2021, the firm offloaded around $20 million worth, followed by another $22 million in Q1 2022. These sales coincided with a steep decline in share value, now over 99.5% off its 52-week high.
To counter the slump, shareholders approved a 1-for-40 reverse stock split on May 8. The change takes effect this Friday, May 22, aiming to lift the share price above the $1.00 threshold. The reverse split will reduce the number of outstanding shares, potentially stabilising Nakamoto’s stock price. Bitcoin’s minor rebound offers little relief for now, as the company’s financial health remains tied to the cryptocurrency’s volatile market. The restructuring marks a critical step in avoiding delisting risks.
