$400M AI crypto treasury firm seeks second reverse split while restoring capacity for 3 billion shares

Nasdaq-listed Digital Currency X Technology Inc. is asking shareholders to approve a 160-for-1 reverse inventory split, also referred to as a share consolidation, on September 3. It can be the corporate’s second consolidation of 2026 after a 12-for-1 action took impact on January 22.

Digital Currency X just lately shifted from electric-vehicle manufacturing into the digital asset sector. In its latest annual report, the corporate mentioned its treasury held 157.45 million EDGEAI tokens. It valued them at about $402 million as of December 31, 2025. It later locked all of these tokens in a 12-month staking settlement. The settlement carried a floating annualized yield of 3.5% to eight%.

For a holder whose stability is divisible by 160, each 160 Class A or Class B shares would grow to be one share. A holder of 16,000 shares, for instance, would obtain 100. The submitting says the corporate would spherical fractional outcomes as much as the closest entire share, so smaller or nondivisible positions wouldn’t observe that arithmetic precisely. The consolidation would cowl each issued and unissued shares. It would take impact on a date confirmed by Nasdaq or one on which the trade raises no objection.

A reverse inventory split, then an authorization reset

The first decision would cut back approved shares from 3 billion, every with a par worth of $0.0001, to 18.75 million, every with a $0.016 par worth. A second decision would instantly improve the authorization again to 3 billion shares on the greater par worth. A 3rd would reorganize the approved share capital again to $0.0001 per share. Shareholders had authorized the 3 billion-share authorization on May 13, based on a May filing.

Authorized shares are capacity, moderately than inventory already issued. The resolutions wouldn’t themselves problem shares or show fast dilution, however they would go away the corporate in a position to problem way more shares after the consolidation than the 18.75 million-share ceiling created by step one alone.

Share base and voting timeline

The disclosed issued-share figures come from two earlier dates and set up solely a ground. Digital Currency X’s annual report listed 19,823,627 Class A shares and 1,334 Class B shares excellent as of April 20. A July 7 filing then mentioned the corporate issued 331,753,557 items, every together with one Class A share and warrants, at a July 3 private-placement closing. Together, these disclosures set up a minimum of 351,577,184 Class A shares plus 1,334 Class B shares earlier than any later warrant train or different issuance.

Class A shares carry one vote every on general-meeting issues, while Class B shares carry 20. On the April counts, the Class B class represented 26,680 votes towards greater than 19.8 million Class A votes. The July issuance added Class A shares, however the supplies don’t set up present holder-by-holder management for the September vote.

The firm said it intended January’s consolidation to assist regain Nasdaq minimal bid-price compliance. By distinction, the August assembly discover doesn’t establish a compliance, financing, or providing rationale for the proposed 160-for-1 reverse inventory split and capital reorganization. Intervening issuance additionally modified the share base, so the 2 ratios don’t describe one steady holder-level discount.

The Zoom-only assembly is scheduled for 10:00 a.m. Hong Kong time on September 3. Internet and telephone voting closes at 11:59 p.m. Eastern time on September 2, while proxy types have a separate deadline no later than 48 hours earlier than the assembly.

The submit $400M AI crypto treasury firm seeks second reverse split while restoring capacity for 3 billion shares appeared first on CryptoSlate.