In short
- Bitcoin company Nakamoto is launching a 1 to 40 exchange rate.
- The move is intended to help them achieve a $1 share price as NAKA has fallen sharply.
- As it stands, shares in the company are more than 99.5% out of 52 weeks.
Public sellers Bitcoin Nakamoto Treasury Company (NAKA) has announced that it will issue 1 for 40 shares, subject to shareholder approval, as it seeks to comply with Nasdaq regulations.
The move is intended to push the company’s share price down to at least $1.00 to meet the minimum price.
Last week, they shared in the company fell to an all-time low after Nakamoto posted a loss of around $239 million in Q1, mainly on the back of the decline in the price of Bitcoin. But the stock has fallen sharply since then, dropping 7.5% on Wednesday to change hands near $0.158 and hit a record low of $0.145 at one point during the day’s trading.
Although shares have gained 2.6% in after-hours trading, they remain more than 99.5% above their 52-week high of $34.77.
The company’s decision to implement a stock split follows a special meeting of shareholders on May 8 where a 1-for-20 and no more than 1-for-50 vote was approved by shareholders, according to the company’s announcement.
As a result of the split, the top shares of common stock will go from 696.1 million shares to 17.4 million, with the expected date of Friday, May 22.
The asset management company, which holds more than 5,000 Bitcoins worth more than $388 million, has sold its asset management vehicle in the past two quarters. He broke up with them first about $20 million worth of BTC in Q4 before selling about $22 million in Q1, according to its latest report.
Bitcoin, which is up 1.6% in the last 24 hours, recently changed hands at around $77,927. The top cryptocurrency has gained more than 2% in the last trading month, but still remains more than 38% from the October all-time high at $126,080.
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