Nakamoto Moves to Stabilize Stock Price

Nakamoto Sells Bitcoin to Cover Costs Amidst Financial Struggles

Nakamoto sold 284 Bitcoin on the last day of March to cover operational expenses, according to the company’s first-quarter financial results. This detail highlights the current situation of one of the country’s Bitcoin treasury companies.

Mounting Losses and Shifting Strategy

The Bitcoin accumulation strategy that once propelled Nakamoto’s stock above $25 per share has been replaced by selling Bitcoin to manage operating costs. The company reported a net loss of $238 million for the first quarter. Over $102 million of this loss stemmed from a 20% decline in the value of its Bitcoin holdings during the quarter. Despite a 500% increase in revenue quarter-over-quarter, the losses overshadowed these gains.

Nakamoto currently holds 5,058 Bitcoin, making it the 20th largest corporate Bitcoin holder globally, just behind ProCap Financial. Michael Saylor’s strategy leads the list, holding over 843,000 Bitcoin.

Reverse Stock Split to Maintain Nasdaq Listing

The company is now focused on maintaining its listing on the Nasdaq. Last December, Nasdaq issued a warning to Nakamoto after its stock price fell below $1 for 30 consecutive trading days. The deadline to rectify this is June 8. The company’s chosen solution is a 1-for-40 reverse stock split, scheduled to take effect on Friday. Shareholders approved the move at a special meeting earlier this month.

The reverse stock split will consolidate every 40 shares into one, reducing the total share count from 696 million to 17.4 million. The stock closed at 16 cents on Wednesday, down 7.5% for the day and more than 99% below its price a year ago. A reverse split does not affect a company’s overall market value; it is a structural adjustment designed to increase the price per share above the listing threshold.

Broader Sector Downturn

Nakamoto’s challenges are not isolated. Reports suggest that crypto treasury companies have generally experienced a downturn since 2025, with many trading below the value of their assets. Some companies have begun selling their Bitcoin holdings to address debt. For example, Genius Group liquidated its entire 84 Bitcoin reserve in February.