Quantum

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Grayscale

<a href="https://www.thestreet.com/crypto/trading/popular-bitcoin-company-receives-nasdaq-delisting-notice" rel="noopener noreferrer nofollow">Nakamoto Inc.</a>&nbsp;(Nasdaq:&nbsp;NAKA), the Bitcoin (BTC) treasury company led by&nbsp;<a href="https://www.thestreet.com/crypto/markets/david-bailey-wants-to-smash-buy-1b-bitcoin" rel="noopener noreferrer nofollow">David Bailey</a>, is struggling to stay on Nasdaq, and the way out seems to be a reverse stock split.
Bailey, U.S. President Donald Trump's crypto advisor during the 2024 presidential campaign, founded a Bitcoin company called Nakamoto Holdings.
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 David Bailey (L) and Eric Trump, son of U.S. President Donald Trump, leave after speaking during the Bitcoin Asia 2025 conference in Hong Kong on August 29, 2025. 
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In May 2025, the company <a href="https://www.thestreet.com/crypto/markets/stock-soars-over-600-after-bitcoin-treasury-strategy" rel="noopener noreferrer nofollow">merged with</a> the healthcare company KindlyMD, Inc. to build a Bitcoin treasury company, with the stock rallying 30%.
But the company's stock failed to consolidate gains in the following months and even <a href="https://www.thestreet.com/crypto/trading/popular-bitcoin-company-receives-nasdaq-delisting-notice" rel="noopener noreferrer nofollow">revealed</a> in December 2025 that it&nbsp;had received a delisting notice from Nasdaq because its shares failed to trade above the minimum bid threshold of $1 for the previous 30 consecutive business days.
<a href="https://www.thestreet.com/crypto/trading/popular-bitcoin-company-receives-nasdaq-delisting-notice" rel="noopener noreferrer nofollow">Related: Popular Bitcoin company receives Nasdaq delisting notice</a>
<h2 id="what-nasdaq-delisting-means">What Nasdaq delisting means</h2>
As per&nbsp;the Nasdaq Listing Rule 5810(c)(3)(A), Nakamoto can regain compliance within 180 calendar days by June 8, 2026.
The company's shares should trade above the $1 price mark for at least 10 consecutive trading days during the six-month period to not get delisted from Nasdaq.
If the company fails to do so,&nbsp;it can transfer its listing to the Nasdaq Capital Market for an extension of the deadline.&nbsp;If the company can't regain compliance even then, Nasdaq could delist the company.
<h3 id="more-on-bitcoin">More on Bitcoin:</h3>
<ul>
 <li><a href="https://www.thestreet.com/crypto/markets/another-crypto-company-sells-bitcoin-amid-50-crash" rel="noopener noreferrer nofollow">Another crypto company sells Bitcoin amid 50% crash</a></li>
 <li><a href="https://www.thestreet.com/crypto/markets/quantum-threat-looms-far-beyond-bitcoin-says-grayscale" rel="noopener noreferrer nofollow">Quantum threat looms far beyond Bitcoin, says Grayscale</a></li>
 <li><a href="https://www.thestreet.com/crypto/markets/bitcoin-could-crash-to-zero-due-to-energy-crisis-economist-warns" rel="noopener noreferrer nofollow">Bitcoin could crash to zero due to energy crisis, economist warns</a></li>
</ul>
<h2 id="rebranding-acquisitions-and-bitcoin-sale">Rebranding, acquisitions, and Bitcoin sale</h2>
A month after receiving the delisting notice,&nbsp;KindlyMD&nbsp;<a href="https://www.thestreet.com/crypto/markets/popular-health-company-rebrands-after-nasdaq-delisting-threat" rel="noopener noreferrer nofollow">changed</a> its corporate name to Nakamoto Inc. in January 2026. The company said its rebranding is intended to better align its corporate identity with the goal of becoming the premier Bitcoin company.
However, the company's stock has failed to trade above $1 after mid-October 2025.
Notably, Nakamoto <a href="https://nakamoto.com/updates/nakamoto-inc-signs-definitive-agreements-to-acquire-btc-inc-and-utxo-management" rel="noopener noreferrer nofollow">agreed to buy</a> two companies Bailey founded, BTC Inc. and UTXO Management, in an all-stock deal valued at $107.3 million in February. But the low stock price diluted existing shareholders.
Last month, Nakamoto also <a href="https://app.quotemedia.com/data/downloadFiling?webmasterId=102691&amp;ref=319915562&amp;type=HTML&amp;cdn=7145fa86dee140abf26e7474a968a65d&amp;formType=10-K&amp;formDescription=Annual+report+pursuant+to+Section+13+or+15%28d%29&amp;dateFiled=2026-03-30&amp;cik=0001946573" rel="noopener noreferrer nofollow">sold</a> approximately 284 Bitcoin for $20 million to use the proceeds to invest further in its businesses and replenish working capital for costs associated with the recent mergers.
After the sale of 5% of the company’s Bitcoin holdings, the company now holds 5,058 Bitcoin on its balance sheet.
<h3 id="trending-on-thestreet-roundtable">Trending on TheStreet Roundtable:</h3>
<ul>
 <li><a href="https://www.thestreet.com/crypto/markets/td-cowen-trims-michael-saylors-strategy-price-target" rel="noopener noreferrer nofollow">TD Cowen trims Michael Saylor's Strategy price target</a></li>
 <li><a href="https://www.thestreet.com/crypto/markets/circle-stock-drops-as-analysts-slash-price-target" rel="noopener noreferrer nofollow">Circle stock drops as analysts slash price target again</a></li>
 <li><a href="https://www.thestreet.com/crypto/investing/cathie-wood-buys-tesla-robinhood-shares-ahead-of-u-s-iran-ceasefire" rel="noopener noreferrer nofollow">Cathie Wood buys trending tech stocks ahead of U.S.-Iran ceasefire</a></li>
</ul>
<h2 id="reverse-stock-split">Reverse stock split</h2>
On Apr. 7,&nbsp;Nakamoto <a href="https://app.quotemedia.com/data/downloadFiling?webmasterId=102691&amp;ref=319940230&amp;type=HTML&amp;cdn=0de3b8eb14ee730fcd85761a50282865&amp;formType=PRE+14A&amp;formDescription=Preliminary+proxy+statement+providing+notification+matters+to+be+brought+to+a+vote&amp;dateFiled=2026-04-07&amp;cik=0001946573" rel="noopener noreferrer nofollow">disclosed</a> in a&nbsp;preliminary proxy filing that it is seeking approval from the company's shareholders for a&nbsp;reverse stock split within the range of&nbsp;1-for-20 and 1-for-50.
What a&nbsp;reverse stock split does is that it reduces the number of shares outstanding and, in turn,&nbsp;increases the share price.
For example, a&nbsp;reverse stock split at a&nbsp;1-for-20 ratio means&nbsp;20 shares trading at $0.20 will turn into a share trading at $4.
If approved by&nbsp;Nakamoto's shareholders on May 8, the reverse stock split could help the company avoid getting delisted from Nasdaq.
The NAKA stock was exchanging hands at $0.2162 at the time of writing, down more than 35% this year.
<a href="https://www.thestreet.com/crypto/markets/popular-health-company-rebrands-after-nasdaq-delisting-threat" rel="noopener noreferrer nofollow">Related: Popular health company rebrands after Nasdaq delisting threat</a>

Nasdaq-listed firm attempts reverse stock split to avoid delisting

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