Battered stock attempts reverse split to avoid Nasdaq delisting

Nakamoto Inc. (Nasdaq: NAKA), the Bitcoin (BTC) treasury company led by Bitcoin Magazine CEO David Bailey, has been struggling to remain listed on Nasdaq for a long time.

Now, it has made the last-ditch attempt to undergo a reverse stock split.

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Nasdaq delisting risk

Bailey, Donald Trump's crypto advisor during the 2024 presidential campaign, founded Nakamoto Holdings, which merged with the healthcare-turned-Bitcoin company KindlyMD, Inc. in May 2025.

Though the company's stock surged on the announcement in May, it didn't perform well in the later months.David Bailey (L), CEO of BTC Inc, and Eric Trump, leave after speaking during the Bitcoin Asia 2025 conference in Hong Kong on August 29, 2025.Getty Images·Getty Images

In December, the company revealed in a Securities and Exchange Commission (SEC) filing that it has received a delisting notice from Nasdaq.

Nasdaq had sent the notice to the company, as its shares couldn't trade above the exchange's minimum bid threshold of $1 for the previous 30 consecutive business days.

Beginning Dec. 10, 2025, the company had 180 calendar days to regain compliance.

As per the Nasdaq's requirement, the company's shares should trade above $1 for at least 10 consecutive trading days during the six-month period to avoid delisting.

The deadline ends on June 8, 2026, and the stock's price has never gone anywhere close to the $1 mark during this period.

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Nakamoto attempts reverse stock split

In January 2026, KindlyMD changed its corporate name to Nakamoto Inc.

Last month, the company revealed 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.

On May 20, the company announced a 1-for-40 reverse stock split which will become effective at 12:01 a.m. ET on May 22.

The symbol “NAKA” will remain the same, but there is a new CUSIP number: 49457M205.

The company said the reverse stock split aims to increase the per share trading price of its common stock to regain compliance with the $1 minimum bid price requirement for continued listing on The Nasdaq Global Market.

Every 40 shares of Nakamoto’s pre-reverse split common stock will be combined and reclassified into one share of common stock.

It means the number of outstanding shares of the company’s common stock will fall from approximately 696.1 million shares pre-reverse split to approximately 17.4 million shares post-reverse split.

Story Continues

The NAKA stock was trading at $0.1601 at the time of writing.

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This story was originally published by TheStreet on May 20, 2026, where it first appeared in the MARKETS section. Add TheStreet as a Preferred Source by clicking here.

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