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Ahmed Barakat
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Nakamoto Ltd it is doing Friday’s 1-for-40 reverse stock split, a rally driven by tracking that plunged 696.1 million shares to about 17.4 million shares and pointed to the one area that determines the exchange’s survival: Nasdaq’s $1.00 minimum required to trade.
The company’s shares fell to $0.22 as of April 6, 2026, which triggered a Nasdaq short notice under Listing Rule 5450(a)(1) with an expiration date of June 8, 2026.
This is not just self-defense. The combination of stock splits and deliberate investment into a Bitcoin Treasury model, places Nakamoto alongside a growing group of cryptocurrencies designed to provide regulated businesses, exposure to BTC prices without directly owning Bitcoin.
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How the 1-for-40 Nakamoto Split Restores Nasdaq’s Tracking, and How It Hurts Existing Shareholders
A 1-for-40 split means that every 40 shares of existing stock are combined into one new share.
At a pre-dividend price of $0.22, the initial dividend price will be close to $8.80, above Nasdaq’s $1.00 floor and in the range required to meet the exchange requirements required under Listing Law 5450(a)(1).
Shareholders approved this at a Special Meeting on May 8, 2026, which gave the board discretion to set the final ratio anywhere between 1-for-20 to 1-for-50.
The board voted 1-for-40. The authorized shares and their value are not changed by the merger, which is very important: Nakamoto retains a greater head of future funds, ATM offers, convertible notes, or the purchase of shares – without needing additional votes of the shareholders to increase the authorized capital.
One cost falls on small investors. Shareholders whose positions are not evenly divided into 40 shares will receive cash instead of fewer shares, not additional shares.
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