Nakamoto Ltd is implementing a 1-for-40 reverse stock split effective May 22, 2026, to comply with Nasdaq's $1.00 minimum bid requirement. This move reduces the company's outstanding shares from 696.1 million to approximately 17.4 million, with the theoretical post-split share price rising to about $8.80. The decision follows a Nasdaq deficiency notice received after shares fell to $0.22 as of April 6, 2026. The reverse split, approved by shareholders on May 8, 2026, also aligns with Nakamoto's strategic shift towards a Bitcoin Treasury model, offering institutional investors regulated exposure to Bitcoin price movements. While the split maintains authorized shares and par value, it allows Nakamoto flexibility for future equity issuances without additional shareholder approval. However, shareholders with fractional shares will receive cash instead of additional stock.