David Bailey's Nakamoto Approves 40-to-1 Stock Split to Push NAKA Above $1

Nakamoto Inc. will execute a 1-for-40 reverse split on May 22, 2026 to satisfy Nasdaq’s $1.00 minimum bid requirement under Nasdaq Rule 5450(a)(1). Shares outstanding will decrease from about 696.1 million to about 17.4 million, while authorized shares remain at 10 billion, leaving potential dilution risk if additional shares are issued. Trading will begin on a split-adjusted basis under the same ticker, NAKA, with a new CUSIP. Shareholders approved the split on May 8, 2026, and the company will consolidate every 40 pre-split shares into one post-split share. No fractional shares will be issued; cash will be paid in lieu. Warrants and equity awards will adjust proportionately, and the transfer agent will handle book-entry changes. Market capitalization and fundamentals remain unchanged.

"Nakamoto Inc. will execute a 1-for-40 reverse split on May 22, 2026, to meet Nasdaq’s $1 minimum bid requirement. NAKA shares outstanding drop from 696.1 million to 17.4 million, while 10 billion authorized shares remain, raising dilution risk. The bitcoin treasury and operating company said every 40 pre-split shares will consolidate into one post-split share. Trading on a split-adjusted basis begins the morning of May 22 under the same ticker, NAKA, with a new CUSIP: 49457M205."

"Nasdaq Rule 5450(a)(1) requires listed companies to maintain a minimum $1.00 bid price. Nakamoto had been trading between $0.17 and $0.24 in recent months, roughly 99% below its May 2025 peak, and had until approximately June 8, 2026, to close at or above $1 for 10 consecutive trading days. The move targets a specific regulatory threshold. The company’s shareholders approved the split in a special meeting on May 8, 2026."

"The board had sought authorization for a ratio in the range of 1-for-20 to 1-for-50 in a preliminary proxy filed in early April. Chairman and CEO David Baileys board settled on the 1-for-40 ratio. Total shares outstanding will fall from approximately 696.1 million to about 17.4 million. Authorized shares remain unchanged at 10 billion, a figure that leaves open the possibility of future share issuance and dilution. No fractional shares will be issued. Shareholders who would otherwise receive a fraction will instead receive cash in lieu."

"Warrants, equity awards, and exercise prices adjust proportionately under the terms of the split. VStock Transfer, LLC, the company’s transfer agent, will handle all book-entry adjustments automatically. The overall market capitalization and company fundamentals remain unchanged by the action. Nakamoto was formed through a merger and spin structure in 2025 with the stated goal of building a bitcoin treasury strategy."

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