ZOOZ Strategy’s Bitcoin-backed stock has entered a compliance timeline with Nasdaq after the exchange informed the firm that its shares no longer satisfy the $1 minimum bid-price criterion, increasing the risk of delisting if the price doesn’t recover within six months.
The dual-listed company, trading on both Nasdaq and the Tel Aviv Stock Exchange, announced on Monday that it plans to keep an eye on the situation, and it may consider implementing a reverse share split if necessary.
A reverse share split involves a company reducing the total number of its outstanding shares and proportionately increasing the price per share, usually to elevate the stock price without altering the firm’s overall market capitalization.
The top 100 Bitcoin treasury companies collectively possess more than 1 million BTC, and the number of publicly traded companies holding Bitcoin surged by 38% between July and September as institutional adoption deepened. Market analysts noted that the increasing accumulation by treasury companies exerts upward pressure on Bitcoin prices.
Related: Major week for crypto treasury firms with an $8B buying spree
ZOOZ’s Bitcoin investment facing challenges
ZOOZ operates under a long-term Bitcoin treasury strategy, having accrued 1,036 BTC (BTC) as a strategic asset, which provides its shareholders with indirect exposure to Bitcoin. This strategy garnered interest in the stock when it launched earlier in the year; however, it has not stopped the share price from falling below the $1 mark.
The notification does not imply an immediate delisting. Per Nasdaq regulations, ZOOZ has until June 15, 2026, to achieve a closing bid of at least $1 for 10 consecutive trading days, and may qualify for an additional grace period if it meets other criteria.
Currently, the company states its operations remain unaffected but admits it may need to explore “available options.”
Related: ETHZilla sells $74.5M in Ether to redeem convertible debt
Winners and losers in Bitcoin strategy
ZOOZ’s warning comes less than a week after KindlyMD, another Bitcoin treasury entity formed through a merger with David Bailey’s Bitcoin-focused holding company Nakamoto, revealed its own price-deficiency warning from Nasdaq after its shares dipped below $1.
The pressure to maintain listings is not exclusive to Bitcoin treasuries. Digital Currency X Technology (DCX), a digital asset company that claims over $1.4 billion in token holdings following its EdgeAI token acquisition, disclosed on December 18 that it received a separate Nasdaq non-compliance notification related to minimum market-value standards.
This doesn’t suggest that all Bitcoin treasuries are in jeopardy. Metaplanet, listed in Tokyo, which also utilizes Bitcoin as a treasury asset, has continued to identify ways to access capital markets, having recently completed the issuance of new shares and Bitcoin-linked dividend instruments targeted at institutional investors.
Strategy, the most recognized corporate Bitcoin holder, has further advanced its strategy into December, adding approximately $980 million in BTC mid-month, boosting its total holdings to over 671,000 coins.
