Bitcoin company Nakamoto plans 1-for-40 stock split after 99% price drop

Publicly traded Bitcoin Treasury company Nakamoto (NAKA) announced it will implement a 1-for-40 reverse stock split, following shareholder approval, as it seeks to maintain compliance with Nasdaq listing rules.

The move is intended to push the company’s stock price back to at least $1.00 in order to meet the minimum offer price requirement.

Last week, stocks rose The company sank to a new all-time low After Nakamoto recorded losses of about $239 million in the first quarter, largely due to the decline in the price of Bitcoin. But the stock has fallen further since then, falling 7.5% on Wednesday to trade near $0.158 and hitting a new all-time low of $0.145 at one point during today’s trading session.

Even with shares up 2.6% in after-hours trading, they are still 99.5% below their 52-week high of $34.77.

The company’s decision to implement a reverse stock split follows a special shareholder meeting on May 8, at which shareholder approval was approved of no less than 1 for 20 and no more than 1 for 50, according to a company announcement.

As a result of the split, the outstanding shares of common stock will move from 696.1 million shares to 17.4 million, with the effective date expected to be Friday, May 22.

The treasury company, which holds a balance of more than 5,000 bitcoin worth more than $388 million, has sold its underlying treasury instrument in each of the last two quarters. I broke up with him first About $20 million worth of BTC in the fourth quarter Before selling about $22 million in the first quarter, according to its latest earnings report.

Bitcoin, which is up 1.6% over the past 24 hours, recently traded around $77,927. The top cryptocurrency assets rose more than 2% in the last month of trading, but are still more than 38% below their all-time high in October of $126,080.