Nakamoto Inc. is squeezing 40 shares into one, effective May 22 at 12:01 a.m. ET. The Bitcoin mining and infrastructure company approved the reverse stock split to meet Nasdaq’s minimum bid price requirement, a threshold its stock had been falling well short of.
Shares of NAKA were trading at $0.22 earlier in April. For context, that’s less than the cost of a single gumball. Nasdaq requires listed companies to maintain a minimum $1 bid price, and Nakamoto had clearly wandered into dangerous territory.
What the split actually does
Think of a reverse stock split like combining pizza slices back into fewer, larger slices. You don’t get more pizza. You just have fewer pieces that each look bigger.
In this case, every 40 pre-split shares become one post-split share. If you held 400 shares before the split, you now hold 10. The total number of shares outstanding drops from roughly 690 million to approximately 17.25 million.
