NAKAMOTO company's stock, which specializes in Bitcoin storage and is known by the symbol (NAKA), dropped by more than 10%, just days after the company implemented a 1-for-40 reverse stock split, a move aimed at complying with Nasdaq listing requirements and avoiding delisting.

Collapse exceeds 99% over the year

NAKA's stock has declined by about 67% since the beginning of the year, but the biggest loss came over the past 12 months, after the stock lost more than 99% of its value from its peak recorded in May 2025 at around $34 per share.

The stock reached its lowest levels near $0.16 in April, before the reverse split was executed on Friday, in an attempt to raise the nominal share price and maintain the minimum required for Nasdaq listing.

The exchange had notified the company last December of the possibility of delisting its shares, after trading below the $1 level for 30 consecutive sessions, according to a disclosure filed with the U.S. Securities and Exchange Commission (SEC).

According to the company, the reverse split reduced the outstanding shares to about 17.4 million, compared to approximately 696 million shares before the process.
What caused the collapse?

The company faced several pressures contributing to the sharp decline in the stock, most notably:

A decline in Bitcoin prices between late 2025 and 2026, which caused significant losses in the fair value of assets.

An increase in outstanding debts, estimated at around $210 million.

Rising investor concerns over dilution resulting from issuing new shares to fund acquisitions, including BTC Inc and UTXO Management.

Selling 284 Bitcoin units in March 2026 to provide liquidity needed to cover operational expenses.

Recording significant operational losses during the first quarter of 2026.

Severe losses for investors

The sharp collapse led to the disappearance of a large part of shareholders’ investments, as the stock lost about 99.68% of its value in just one year.

According to Bull Theory estimates, an investment of $10,000 in the stock a year ago is now worth only #WinGoldBarsWithGrowthPoints about $32.