ZOOZ Strategy’s Bitcoin-backed stock has triggered a compliance notice from Nasdaq after the exchange determined that its shares have fallen below the $1 minimum bid-price threshold, putting the firm at risk of delisting if the price does not recover in the next six months.

The dual-listed company, which trades on Nasdaq and the Tel Aviv Stock Exchange, has stated that it will monitor the situation closely and may consider executing a reverse stock split if necessary.

A reverse split involves reducing the number of shares outstanding, effectively increasing the share price without altering the company’s overall market value.

The top 100 companies holding Bitcoin collectively manage over 1 million BTC, with the number of public firms investing in Bitcoin increasing by 38% from July to September as institutional interest deepens. Previously, analysts suggested that the rising interest from treasury firms could apply upward pressure on Bitcoin’s price.

Related: Monster week for crypto treasury firms with $8B buying blitz

ZOOZ’s Bitcoin Strategy Under Pressure

ZOOZ has adopted a long-term strategy focused on Bitcoin treasuries and has amassed 1,036 BTC, offering shareholders indirect exposure to Bitcoin. This approach generated interest earlier in the year when ZOOZ launched, yet it has not prevented the stock price from dropping below the $1 threshold.

The Nasdaq notice is not an immediate precursor to delisting. According to exchange regulations, ZOOZ has until June 15, 2026, to achieve a closing bid of $1 for at least ten consecutive trading days and could qualify for a second grace period based on further criteria.

Zooz share price tanks below $1. Source: Yahoo Finance

At this stage, the company has reassured that its operations remain stable but acknowledges it may have to explore all available options.

Related: ETHZilla liquidates $74.5M in Ether to redeem convertible debt

Bitcoin Strategy: Winners and Losers

ZOOZ’s recent notification comes shortly after KindlyMD, another firm in the Bitcoin treasury space formed through a merger with David Bailey’s Nakamoto, revealed that it had also received a price-deficiency notice from Nasdaq due to its shares falling below $1.

The pressure isn’t exclusive to Bitcoin treasuries. Digital Currency X Technology (DCX), a digital asset firm claiming over $1.4 billion in token holdings after acquiring EdgeAI tokens, announced on December 18 that it, too, had received a notification from Nasdaq tied to minimum market-value requirements.

This does not spell trouble for every Bitcoin treasury, however. Metaplanet, which is listed in Tokyo and utilizes Bitcoin as a treasury, has successfully accessed capital markets and most recently announced the clearance of issuing new shares along with Bitcoin-linked dividends aimed at institutional investors.

Furthermore, Strategy, the most recognized corporate Bitcoin holder, has continued its purchasing strategy into December, acquiring approximately $980 million worth of BTC in mid-month, increasing its total holdings to over 671,000 coins.