Another Bitcoin-related company is attempting to revive its stock price through financial engineering measures. Given that Nakamoto’s current trading price is around $0.21 per share—far below NASDAQ’s minimum listing requirement of $1 per share, as well as the company’s historical high of $34 per share—Nakamoto intends to seek shareholder approval for a reverse stock split. On April 7, the company submitted the relevant preliminary documents.

This move comes two months after CEO David Bailey used these low-priced shares to acquire his own companies, BTC Inc. and UTXO Management. That acquisition doubled the number of publicly traded shares, resulting in a dilution of existing shareholders’ holdings. Famous short-selling expert Jim Chanos described this action as “malicious manipulation.”

A reverse stock split involves merging multiple shares into one, artificially boosting the stock price. For example, a 1:20 reverse split would reduce 20 shares to 1 share; if you originally held 100 shares at $0.21 each, totaling $21, after the split you would have 5 shares at $4.20 each. While your total value remains the same, the price per share increases, allowing the company to meet NASDAQ’s listing requirements.

However, reverse stock splits are often seen as a dangerous sign, as they merely provide a temporary solution rather than addressing the underlying issues. In fact, Nakamoto has long faced various operational challenges. In March this year, the company disclosed that it had sold 284 Bitcoins to cover its operating expenses, which analysts considered a significant “acute stress” for Bitcoin-related companies whose stock prices had already plummeted.

According to available information, the company still holds 5,058 Bitcoins, worth approximately $364 million. On December 10, 2025, NASDAQ issued a notice of non-compliance because the company’s stock price remained below $1 for 30 consecutive trading days. The company now has until June 8 to restore compliance, meaning its stock price must remain at $1 or above for 10 consecutive trading days.

If it fails to meet this requirement, NASDAQ may transfer the company’s shares to the NASDAQ Capital Market, giving it an additional 180 days to comply. Otherwise, the company’s shares could face delisting. In its submitted documents, the company stated, “We believe that, with shareholder approval, a reverse stock split would provide us with more flexibility in meeting minimum bidding requirements if necessary.”

Even after the split, Nakamoto would still have approximately 690 million publicly traded shares, but it plans to maintain a total authorized share issuance of 10 billion shares. This means that dozens of additional billions of shares could be issued in the future, potentially further diluting existing shareholders’ holdings. Nakamoto is also aware of this risk, noting in its documents, “Issuing additional shares would dilute the rights of existing shareholders and could also lead to a decrease in the trading price of our common stock.”