ZOOZ Strategy’s Bitcoin-focused stock has been placed on a Nasdaq compliance clock after the exchange notified the company that its shares no longer meet the $1 minimum bid-price requirement, raising the risk of delisting if the price does not recover within six months.
The dual-listed company, which trades on both Nasdaq and the Tel Aviv Stock Exchange, said in a statement on Monday that it is monitoring the situation and may consider a reverse stock split if necessary.
A reverse stock split reduces the number of outstanding shares while increasing the price per share proportionally, a move often used to regain compliance without affecting the company’s overall market capitalization.
The world’s top 100 Bitcoin treasury companies collectively hold more than 1 million BTC, and the number of public firms holding Bitcoin increased by 38% between July and September as institutional adoption accelerated. At the time, analysts said growing treasury accumulation could exert upward pressure on Bitcoin’s price.
ZOOZ’s Bitcoin bet under pressure
ZOOZ is built around a long-term Bitcoin treasury strategy and has accumulated 1,036 BTC as a strategic asset, giving shareholders indirect exposure to Bitcoin. While the approach initially drew investor interest following the company’s launch earlier this year, it has not prevented the share price from falling below the $1 threshold.
The Nasdaq notice does not signal an immediate delisting. Under exchange rules, ZOOZ has until June 15, 2026, to regain compliance by closing at or above $1 for at least 10 consecutive trading days, and it may qualify for an additional grace period if it meets certain requirements.
For now, the company says its operations remain unaffected, though it acknowledged it may need to consider “available options” to address the issue.
Winners and losers of the Bitcoin treasury strategy
ZOOZ’s notice comes less than a week after KindlyMD — another Bitcoin treasury-focused firm formed through a merger with David Bailey’s Bitcoin-native holding company Nakamoto — disclosed that it had also received a Nasdaq price-deficiency warning after its shares fell below the $1 threshold.
The listing pressure extends beyond pure Bitcoin treasury plays. Digital Currency X Technology (DCX), a digital asset firm reporting more than $1.4 billion in token holdings following its EdgeAI token acquisition, said on Dec. 18 that it received a separate Nasdaq non-compliance notice related to minimum market-value requirements.
Still, not all Bitcoin treasury companies are facing similar challenges. Tokyo-listed Metaplanet, which also uses Bitcoin as a core treasury asset, has continued to access capital markets, most recently approving the issuance of new shares and Bitcoin-linked dividend instruments aimed at institutional investors.
Strategy, the most prominent corporate Bitcoin holder, has likewise continued to expand its position. In mid-December, the company added approximately $980 million worth of Bitcoin, bringing its total holdings to more than 671,000 BTC.
