Bitcoin Treasury Company Nakamoto Takes Action To Prevent Stock Slide
TL;DR
Nakamoto sold 284 Bitcoin to cover operating costs amid a $238 million net loss in Q1. The company is implementing a 1-for-40 reverse stock split to avoid delisting from Nasdaq by June 8.
Key points
- Nakamoto sold 284 Bitcoin to cover operating costs
- The company reported a net loss of $238 million in Q1
- Nakamoto is implementing a 1-for-40 reverse stock split
- The reverse split is to avoid delisting from Nasdaq
- Nakamoto holds 5,058 Bitcoin, ranking 20th among corporate holders
Mentioned in this story
Nakamoto sold 284 Bitcoin on the last day of March just to keep the lights on. That detail, buried in the company’s first-quarter financial results, tells the story of where one of the country’s Bitcoin treasury companies now stands.
A Company Running Low On Options?
The Bitcoin accumulation strategy that once drove Nakamoto’s stock above $25 a share has given way to something far less glamorous — selling Bitcoin to cover operating costs. The company reported a net loss of $238 million for the first quarter of the year, with more than $102 million of that tied to a drop in the value of its Bitcoin holdings after the cryptocurrency fell 20% during the quarter. Revenue jumped 500% quarter over quarter, but the losses swamped those gains. Nakamoto holds 5,058 Bitcoin, making it the 20th largest corporate Bitcoin holder in the world, just behind ProCap Financial. Michael Saylor’s Strategy sits at the top of that list with more than 843,000 Bitcoin on its balance sheet — a gap that makes clear how far down the pecking order Nakamoto falls.
Following Stockholder Approval, Nakamoto Announces 1-for-40 Reverse Stock Split to be Effective May 22, 2026
Read the full announcement here:
— Nakamoto (@nakamoto) May 20, 2026
Racing The Clock On Nasdaq
The company is now focused on a more immediate problem: staying listed on the Nasdaq. Last December, Nasdaq sent Nakamoto a warning after its stock price dropped below $1 for 30 straight trading days.
The deadline to fix that is June 8, and the fix the company has chosen is a 1-for-40 reverse stock split, set to take effect Friday.
Consolidation Ahead For The Sector
Nakamoto’s troubles are not unique. Reports indicate that crypto treasury companies broadly have been in a downturn since 2025, with many trading below the value of the assets on their books. Some have begun selling their Bitcoin holdings to pay down debt. One company, Genius Group, liquidated its entire 84 Bitcoin reserve in February for that purpose. *Featured image from Unsplash, chart from TradingView*
Q&A
Why did Nakamoto sell 284 Bitcoin in March?
Nakamoto sold 284 Bitcoin to cover operating costs after reporting a significant net loss.
What is the significance of Nakamoto's 1-for-40 reverse stock split?
The reverse stock split aims to increase the stock price above $1 to maintain its Nasdaq listing, following a warning from the exchange.
How does Nakamoto's Bitcoin holding compare to other companies?
Nakamoto holds 5,058 Bitcoin, making it the 20th largest corporate Bitcoin holder, significantly less than leaders like Michael Saylor's company with over 843,000 Bitcoin.
