Nakamoto Inc., a company that invested heavily in bitcoin, is facing serious problems after its stock price dropped again following a reverse stock split.

The company carried out a 1-for-40 reverse stock split on May 22, 2026, to keep its shares listed on the Nasdaq stock exchange. After the split, Nakamoto’s stock fell more than 10%.

The company’s shares are now down about 67% since the start of the year.

They have also lost more than 99% of their value since reaching a high of around $34 per share in 2025.

Nasdaq had warned Nakamoto that it could be removed from the exchange because its stock traded below $1 for at least 30 straight days. Companies listed on Nasdaq must keep their share price above $1.

A reverse stock split reduces the number of shares while increasing the price of each share. In Nakamoto’s case, every 40 old shares became one new share. The total number of shares dropped from about 696 million to around 17.4 million.

Before the split, Nakamoto’s stock price had fallen to as low as $0.16 per share. After the split, investors expected the price to rise much higher. Instead, the stock opened at around $4.70, showing that many investors were still selling the stock.

The stock had already plunged by more than 99% from its peak the previous year.

Nakamoto calls itself a bitcoin treasury company. This means it holds large amounts of bitcoin as part of its business strategy. The company currently owns around 5,058 bitcoin, making it one of the larger public companies holding the digital money.

At current bitcoin prices, those holdings are worth hundreds of millions of dollars. Some analysts believe the value of Nakamoto’s bitcoin is actually higher than the company’s stock market value.

Even so, investors remain worried about the company’s future. Many fear the company could issue more shares in the future, which could reduce the value of existing shares.

Reports also said Nakamoto had registered hundreds of millions of shares for possible resale and could raise billions of dollars through future securities offerings. This increased concerns about dilution among investors.

The market response suggests that investors are still concerned about share dilution, financial strain on the company’s balance sheet, and whether the firm can restore confidence following the sharp decline in its stock price.

Nakamoto’s problems are happening during a difficult time for the bitcoin treasury industry. Many companies that built their businesses around buying bitcoin have struggled since the market weakened in 2025 and the price of bitcoin fell by around 50%.