Nakamoto Stock Crashes 99% as Nasdaq Delisting Looms

Nakamoto Holdings dumped 284 Bitcoin last month for ₱1.2 billion ($20 million), locking in a 40% loss after paying an average of ₱7,070,763 ($118,000) per coin and selling at ₱4,194,520 ($70,000).

The fire sale came one month after the company doubled its share count to 690 million through all-stock acquisitions of BTC Inc. and UTXO Management in February. By March, the stock had collapsed to $0.21, down from $34 a year earlier. Nasdaq issued a delisting notice in December when the stock fell below the exchange's $1 minimum requirement.

CoinShares Investment Analyst Satish Patel said the reverse split buys time but doesn't fix the business strategy. The move signals that Nakamoto cannot self-fund operations from its acquired businesses and remains dependent on capital markets access. Investors now pay just 59 cents for every dollar of Bitcoin the company holds.

Nakamoto CEO David Bailey pushed back hard, calling the analysis nonsense. He said the reverse split has no relevance to the operating business and that investors view it as the right decision. If shareholders reject the proposal, the company has another six months to secure votes, Bailey noted.

Renowned short seller Jim Chanos called the situation "Theater of the Absurd." Historical precedent isn't encouraging: Citigroup executed a 1-for-10 reverse split at $4.50 in 2011 and fell to $3 by November. RadioShack did the same ratio in 2013 and filed for bankruptcy two years later.

Nakamoto is seeking shareholder approval to authorize 10 billion shares and raise up to ₱299.01 billion ($4.99 billion) in capital.