Karla Barker 
Bitcoin firm faces delisting pressure
Nakamoto, the bitcoin treasury company, is taking what some might call a desperate measure to stay on the Nasdaq exchange. They’ve filed paperwork for a reverse stock split, which would combine shares at ratios ranging from 1-for-20 to 1-for-50. The move comes as their stock price has plummeted to around $0.22 per share, down about 99% from its peak in May 2025.
I think this is interesting because it shows how even bitcoin-focused companies aren’t immune to traditional market pressures. The Nasdaq requires listed companies to maintain a minimum bid price of $1 per share, and Nakamoto has been trading well below that threshold for some time. A reverse split doesn’t actually change the company’s fundamental value—it just reduces the number of shares outstanding while proportionally increasing the price per share.
Liquidity management continues
The company recently sold about 5% of its bitcoin holdings, leaving it with 5,058 BTC. This suggests ongoing liquidity challenges, though perhaps it’s just prudent cash management. Bitcoin’s price has dropped significantly from its October highs of over $126,000 to around $70,000 recently, which has put pressure on all bitcoin-related stocks.
Other firms in the space have taken similar steps. Strive Asset Management did something comparable earlier this year. Most digital asset treasury shares have been struggling lately, tracking bitcoin’s price decline.
Potential share overhang concerns
Alongside the reverse split proposal, Nakamoto registered more than 400 million shares for potential resale by existing investors in a Form S-3 filing. This doesn’t raise new capital for the company, but it creates what traders call an “overhang”—a large pool of shares that could be sold into the market at any time, potentially weighing on the stock price.
The company also has what’s called a shelf registration allowing up to roughly $7 billion in future securities issuance. That’s separate from an at-the-market program of up to approximately $5 billion, which would let them sell newly issued shares directly into the market over time.
These moves together paint a picture of a company trying to navigate difficult market conditions while maintaining its exchange listing. The reverse split is essentially a technical fix to meet Nasdaq requirements, but it doesn’t address the underlying business challenges.
What strikes me is how traditional financial maneuvers are being employed in what’s supposed to be a cutting-edge crypto space. Reverse splits have long been used by struggling companies on Wall Street, and now we’re seeing bitcoin firms resort to the same tactics. It’s a reminder that regardless of the asset class, public companies face similar regulatory and market pressures.
The next few months will be telling. Shareholders need to approve the reverse split, and even if they do, the company will need to demonstrate sustainable business performance to regain investor confidence. Otherwise, they might just be buying time before facing the same challenges again.