Bitcoin · The Block
Nakamoto also launched an actively managed bitcoin derivatives strategy during the quarter to earn yield on its holdings
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"The Block remain highly confident in the long-term earnings power of the company The Block is building," CEO David Bailey said in last week's earnings release.
Key facts
- Nakamoto shares dropped by more than 17% to $0.14 immediately after the announcement before recovering to $0.16
- The company currently holds 5,058 bitcoins worth nearly $391 million after selling 284 BTC during the first quarter to fund working capital needs
- Earlier this month, Nakamoto reported a $238.8 million first-quarter net loss, driven mostly by a $102.5 million unrealized loss tied to bitcoin prices
- The decision was approved by investors at a shareholders meeting earlier this month, where the board was weighing a split ratio between 1-to-20 and 1-to-50
Summary
Nakamoto Inc (Nasdaq: NAKA) said Wednesday that it will enact a 1-for-40 reverse stock split later this week as the bitcoin (BTC) treasury company's shares continue to slide further below Nasdaq's minimum listing threshold. The reverse split takes effect at market open on Friday and will keep the same NAKA ticker symbol. The move is intended to help the company regain compliance with Nasdaq's $1 minimum price requirement. Nakamoto shares dropped by more than 17% to $0.14 immediately after the announcement before recovering to $0.16. The company said the reverse split will reduce its outstanding common shares from about 696.1 million to 17.4 million, with holders receiving cash payments to cancel out any remaining fractional shares.