Nakamoto Proposes Reverse Stock Split to Avoid Nasdaq Delisting

Nakamoto, a Bitcoin-focused firm, is seeking shareholder approval for a reverse stock split to maintain its listing on the Nasdaq exchange. The proposed consolidation ratio ranges from 1-for-20 to 1-for-50, aimed at artificially boosting the share price to meet exchange requirements. This move comes after the company's stock fell below the $1 minimum bid price requirement on October 30, triggering a deficiency notice. To regain compliance, Nakamoto must maintain a share price above $1 for at least 10 consecutive trading days before the deadline of June 8, 2026. While reverse splits are necessary to preserve exchange liquidity, they are often perceived by investors as a signal of fundamental weakness and historical price declines.