Publicly traded Bitcoin financial company Naka announced that, following shareholder approval, it will implement a 1-for-40 reverse stock split to maintain compliance with Nasdaq listing rules.
This move aims to push the company's stock price back to at least $1 to meet the minimum bid price requirement.
Last week, stock prices... The company's stock price fell to a new all-time low. MicroStrategy reported a first-quarter loss of approximately $239 million, primarily due to the decline in Bitcoin's price. Since then, the stock has continued to drop, falling 7.5% on Wednesday and trading near $0.158, with an intraday low of $0.145—a new all-time low.
Although the stock rose 2.6% in after-hours trading, it is still more than 99.5% below its 52-week high of $34.77.
According to the company’s announcement, the decision to implement a reverse stock split was made following the special general meeting on May 8, at which shareholders approved a stock split ratio of 1:20 to 1:50.
After the stock split, the number of outstanding common shares will decrease from 696.1 million to 17.4 million, with an expected effective date of Friday, May 22.
This asset management company, which holds over 5,000 bitcoins valued at more than $388 million, sold off its primary asset management tool in each of the last two quarters. It first sold... approximately $20 million worth of bitcoin in the fourth quarter, according to its most recent earnings report, with first-quarter sales totaling approximately $22 million.
Bitcoin rose 1.6% in the past 24 hours, with its latest trading price at approximately $77,927. This leading cryptocurrency has gained over 2% in trading over the past month but remains more than 38% below its all-time high of $126,080 set in October.