Live markets: Crypto prices remain flat ahead of FOMC minutes, Nvidia earnings

A notable development has hit the crypto markets. 7 minutes ago · 2:24 PMJames Van StratenShare Share this post Copy link X (Twitter) LinkedIn Facebook EmailNAKA sets 1:40 reverse stock splitBitcoin treasury firm Nakamoto (NAKA), founded by David Bailey, will implement a 1-for-40 reverse stock split on May 22, the company said, to regain compliance with Nasdaq’s minimum $1 bid price requirement. The action comes as the stock has plunged more than 99% from its peak of one year ago to the current $0.

Reverse stock splits are a common strategy used by struggling companies to avoid removal from major exchanges. The tactic increases the stock price proportionally, but it does not change the company’s underlying market value.

It's a sign of the times for digital asset treasury companies. Back in January, Strive (ASST) implemented a 1-for-20 reverse stock split to lift its share price above $1.

Crypto markets are watching this development closely as investors weigh its potential impact on prices.