Nakamoto, the Bitcoin treasury firm behind BTC▲$64,344.00 Inc., will combine every 40 shares into one as it tries to stay compliant with Nasdaq.
Nakamoto, the Nasdaq-listed Bitcoin treasury company that owns BTC Inc., the company behind Bitcoin Magazine, will carry out a 1-for-40 reverse stock split after its shares fell over 60% this year.
The company announced the split in a May 20 press release, saying it will take effect on May 22. Nakamoto’s stock is expected to keep trading under the ticker NAKA when the market opens that day, but on a split-adjusted basis.
The move is meant to help Nakamoto regain compliance with Nasdaq’s $1 minimum bid price rule as its shares closed at $0.1579 on May 20, down 7.5% on the day, according to data from Google Finance.
NAKA closed at $0.4 on Jan. 2 and at $0.15 on May 20, meaning the stock is down about 61.3% this year.
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Nakamoto Shrinks Shares to 17M
Under the new plan, every 40 existing Nakamoto shares will become one share, and Nakamoto’s outstanding common shares will fall from about 696.1 million before the split to about 17.4 million after it.
However, because this is a reverse split, it won’t create value by itself. It will reduce the share count and raise the per-share price by the same ratio before normal market trading resumes.
Based on Nakamoto’s May 20 closing price, the 1-for-40 reverse split would put the stock around $6.32 per share before normal market trading resumes.
Nakamoto shareholders approved a reverse split range of 1-for-20 to 1-for-50 at a special meeting on May 8, the press release reads, adding that the board later chose the 1-for-40 ratio.
Nakamoto describes itself as a Bitcoin treasury firm with businesses across media, asset management, financial services and advisory work. It owns BTC Inc., the company behind Bitcoin Magazine and The Bitcoin Conference, and UTXO Management, a Bitcoin-focused asset manager.
BitcoinTreasuries data shows Nakamoto holds about 5,058 BTC, making it the 20th-largest publicly traded Bitcoin holder.
