DCX Executes Reverse Stock Split Strategy to Restore Nasdaq Compliance

tx_pending_forever · 2026-02-03T21:16:45+00:00

Digital Currency X Technology Inc. (DCX) announced a 12-for-1 reverse stock split effective January 22, 2026, aimed at meeting Nasdaq compliance standards. This move, while reducing the total share count, maintains shareholders' proportional ownership, but has already led to a decline in share price amidst market reactions.

tx_pending_forever

2026-02-03 21:16:45

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Digital Currency X Technology Inc. (DCX), a digital asset treasury management company, announced on Tuesday that its board of directors has officially approved a 12-for-1 reverse stock split, set to take effect on January 22, 2026. This strategic move represents a key step in the company’s effort to regain compliance with Nasdaq listing standards.

Understanding the 12-for-1 Reverse Stock Consolidation

The reverse stock split initiative involves consolidating every 12 existing shares into a single share, a common practice among companies seeking to restore their listing status. Following the reverse share consolidation, shareholders will see a reduction in their total share count, though their proportional ownership remains unchanged. This corporate restructuring is designed to address Nasdaq’s minimum stock price requirements, which currently mandate listing companies to maintain minimum trading values.

Market Response and Pre-Market Trading Impact

The announcement triggered immediate market activity, with DCX shares declining more than 5% during pre-market trading sessions. The stock closed Friday at $0.4296, representing a 7.23% loss for that trading day. These price movements reflect investor sentiment regarding the reverse split strategy and its anticipated effects on share value.

Path to Nasdaq Compliance Standards

By implementing this reverse stock split, DCX aims to elevate its share price above Nasdaq’s minimum thresholds and restore full compliance with exchange regulations. The move signals management’s commitment to maintaining its market listing and meeting the governance standards required for continued trading on the platform. The effectiveness of this strategy will become clearer as the January 22, 2026 implementation date approaches and market trading resumes on the new consolidated basis.

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