Nasdaq-listed firm attempts reverse stock split to avoid delisting

Nakamoto Inc. (Nasdaq: NAKA), the Bitcoin (BTC) treasury company led by David Bailey, is struggling to stay on Nasdaq, and the way out seems to be a reverse stock split.

Bailey, U.S. President Donald Trump's crypto advisor during the 2024 presidential campaign, founded a Bitcoin company called Nakamoto Holdings.David Bailey (L) and Eric Trump, son of U.S. President Donald Trump, leave after speaking during the Bitcoin Asia 2025 conference in Hong Kong on August 29, 2025.Getty Images·Getty Images

In May 2025, the company merged with the healthcare company KindlyMD, Inc. to build a Bitcoin treasury company, with the stock rallying 30%.

But the company's stock failed to consolidate gains in the following months and even revealed in December 2025 that it had received a delisting notice from Nasdaq because its shares failed to trade above the minimum bid threshold of $1 for the previous 30 consecutive business days.

Related: Popular Bitcoin company receives Nasdaq delisting notice

What Nasdaq delisting means

As per the Nasdaq Listing Rule 5810(c)(3)(A), Nakamoto can regain compliance within 180 calendar days by June 8, 2026.

The company's shares should trade above the $1 price mark for at least 10 consecutive trading days during the six-month period to not get delisted from Nasdaq.

If the company fails to do so, it can transfer its listing to the Nasdaq Capital Market for an extension of the deadline. If the company can't regain compliance even then, Nasdaq could delist the company.

More on Bitcoin:

Another crypto company sells Bitcoin amid 50% crash Quantum threat looms far beyond Bitcoin, says Grayscale Bitcoin could crash to zero due to energy crisis, economist warns

Rebranding, acquisitions, and Bitcoin sale

A month after receiving the delisting notice, KindlyMD changed its corporate name to Nakamoto Inc. in January 2026. The company said its rebranding is intended to better align its corporate identity with the goal of becoming the premier Bitcoin company.

However, the company's stock has failed to trade above $1 after mid-October 2025.

Notably, Nakamoto agreed to buy two companies Bailey founded, BTC Inc. and UTXO Management, in an all-stock deal valued at $107.3 million in February. But the low stock price diluted existing shareholders.

Last month, Nakamoto also sold approximately 284 Bitcoin for $20 million to use the proceeds to invest further in its businesses and replenish working capital for costs associated with the recent mergers.

After the sale of 5% of the company’s Bitcoin holdings, the company now holds 5,058 Bitcoin on its balance sheet.

Trending on TheStreet Roundtable:

TD Cowen trims Michael Saylor's Strategy price target Circle stock drops as analysts slash price target again Cathie Wood buys trending tech stocks ahead of U.S.-Iran ceasefire

Story Continues

Reverse stock split

On Apr. 7, Nakamoto disclosed in a preliminary proxy filing that it is seeking approval from the company's shareholders for a reverse stock split within the range of 1-for-20 and 1-for-50.

What a reverse stock split does is that it reduces the number of shares outstanding and, in turn, increases the share price.

For example, a reverse stock split at a 1-for-20 ratio means 20 shares trading at $0.20 will turn into a share trading at $4.

If approved by Nakamoto's shareholders on May 8, the reverse stock split could help the company avoid getting delisted from Nasdaq.

The NAKA stock was exchanging hands at $0.2162 at the time of writing, down more than 35% this year.

Related: Popular health company rebrands after Nasdaq delisting threat

This story was originally published by TheStreet on Apr 10, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.

View Comments