Nakamoto, a U.S.-listed Bitcoin treasury company, disclosed it sold 284 BTC on March 31 to fund operations as it posted a steep first-quarter loss and moved to preserve its Nasdaq listing with a reverse stock split.
First-Quarter Results Show Loss Despite Revenue Jump
The company reported a net loss of $238 million for the first quarter. Approximately $102 million of that was tied to a decline in the carrying value of its Bitcoin holdings after the cryptocurrency fell about 20% during the period. While revenue increased roughly 500% quarter over quarter, those gains were more than offset by losses.
Nakamoto said it holds 5,058 BTC, which it estimates places it among the larger corporate Bitcoin treasuries globally. The sale of 284 BTC at the end of March was described as a measure to cover operating costs.
Reverse Stock Split to Address Nasdaq Compliance
Nakamoto is facing a June 8 deadline to regain compliance with Nasdaq’s minimum bid price requirement after its shares traded below $1 for 30 consecutive trading days in December. Shareholders approved a 1-for-40 reverse stock split at a special meeting earlier this month, with the split set to take effect on May 22, 2026.
Under the plan, every 40 shares will be combined into one, reducing the outstanding share count from about 696 million to roughly 17.4 million. A reverse split does not change a company’s overall market value; it is a structural adjustment intended to raise the price per share to meet exchange listing thresholds.
Shares closed at $0.16 on Wednesday, down 7.5% on the day and more than 99% below their level a year ago.
Broader Pressures on Crypto Treasury Firms
Nakamoto’s challenges mirror pressures across the sector. Crypto treasury companies have struggled since 2025, with several trading below the value of their on-balance-sheet assets, according to industry reports. Some firms have begun selling Bitcoin to service debt; in February, Genius Group liquidated its entire reserve of 84 BTC for that purpose.