Nasdaq Slaps Bitcoin Treasury Firm ZOOZ Strategy with Delisting Warning as Stock Plunges Below $1 Threshold

Another crypto-correlated stock hits the regulatory danger zone.

The Compliance Bell Tolls

Nasdaq has officially issued a delisting warning to ZOOZ Strategy, a firm that built its business around corporate Bitcoin treasury management. The trigger? A share price that has cratered below the exchange's mandatory $1 minimum bid requirement. It's a stark notification that puts the company on a clock to regain compliance or face removal from the prestigious market.

When the Bitcoin Bet Backfires

The warning shines a harsh light on the volatile marriage between traditional equity markets and cryptocurrency-focused business models. ZOOZ Strategy's core pitch—helping other companies manage Bitcoin on their balance sheets—has apparently failed to immunize its own stock from the brutal downdrafts of the crypto market. The sub-$1 price tag signals a profound crisis of investor confidence, turning the firm's expertise into a cruel irony.

The Uphill Battle for Survival

Recovery won't be a simple feat. To dodge delisting, ZOOZ must engineer a sustained stock price rebound above that critical $1 line, a task that often leads to desperate maneuvers like reverse stock splits—the financial equivalent of rearranging deck chairs on the Titanic. It's a brutal spotlight on the harsh reality that Wall Street's patience for 'story stocks' wears thin fast when the numbers don't add up. After all, in the eyes of the exchange, a dollar is a dollar, whether it's digital or not.

So, while the boardroom debates reverse splits and press releases, the market delivers its own verdict: one cent at a time. Just another day where the 'future of finance' meets the old-school rules of the game—and loses.

US-Israeli listed Bitcoin DAT to use ‘available options’ to drive stock price up

ZOOZ Strategy, which is also listed on the Tel Aviv Stock Exchange, said it is monitoring the situation and is looking at its options if its share price does not recover within the compliance window. The company mentioned one option under consideration is a reverse share split, which could lift their share price without changing overall market capitalization.

According to Google Finance data, ZOOZ’s stock has been posting losses for the better part of 2025, tanking by over 84% in the last 12 months. On the Tel Aviv Stock Exchange, ZOOZ shares were changing hands at ILA 127.00, down 2.08% on the day. Over the past five days, the stock fell 4.51%, while its six-month performance spells a decline of more than 50%.

Looking at its year-to-date figures, the bitcoin DAT’s shares are down 82% with a 52-week high of just $5 reached in July. ZOOZ’s financial results for the year ending in June garnered a revenue of $123,500, a year-over-year drop of more than 54%. 

Operating expenses ROSE by about 5% to $2.65 million, while net income was deeply in the negative column with a loss of $3.52 million. The company is reported to hold a total of 1,036 bitcoins, equivalent to $90 million at current prices.

KindlyMD and Nakamoto holdings face similar Nasdaq predicament

Just less than a week ago, Bitcoin treasury firm KindlyMD disclosed that it had also received a price-deficiency notice from Nasdaq. The healthcare data company turned digital asset treasury’s shares also traded below the $1.00 mark for 30 consecutive trading days after slipping down the level for the first time this year in early October.

KindlyMD was created through a reverse takeover in August by Nakamoto, a Bitcoin-focused holding company founded by David Bailey. The transaction preserved the KindlyMD corporate name while changing the stock ticker, and its shares surged to record highs when the takeover was first announced in May. 

Per regulatory filings cited in Cryptopolitan’s report, KindlyMD said it plans to monitor its stock price and consider available options, but critics of the digital asset treasury model believe the firm should sell a portion of its  5,398 bitcoins to stabilize its business and improve NAKA’s share price.

After the receipt of the Nasdaq notice, Nakamoto authorized a $10 million share repurchase program last week, which is 40% of the $24 million in cash and cash equivalents the firm reported as of September 30. 

ETHZilla abandons digital asset treasury strategy

While ZOOZ and KindlyMD work to preserve their Nasdaq listings, ETH treasury company ETHZilla announced on Monday its exit from the business model by selling $74.5 million worth of its crypto holdings.

The company said it sold Ether to reduce debt and “believes its value will be driven by revenue and cash FLOW growth from RWA tokenization business.” ETHZilla said it is discontinuing the mNAV dashboard on its website effective immediately, although it will still provide periodic balance sheet updates to investors.

Less than six months ago, ETHZilla had transitioned into an Ethereum-based digital asset treasury joining several firms accumulating crypto assets as long-term holdings. The Peter Thiel-backed company said it currently holds 69,802 coins, valued at approximately $207 million after the recent asset sales.

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