AI Crypto Treasury Company Proposes 160-to-1 Reverse Split, Seeks Shareholder Approval for Capital Restructuring

Nasdaq-listed Digital Currency X Technology Inc. is requesting shareholder approval for a 160-to-1 reverse stock split during a special meeting on September 3, 2026. This would mark the company’s second stock consolidation this year, following a 12-to-1 split implemented on January 22, 2026.

The company has pivoted from electric vehicle manufacturing to focus on the digital asset space. Its most recent annual report disclosed a cryptocurrency treasury of 157.45 million EDGEAI tokens, valued at approximately $402 million as of December 31, 2025. These holdings were subsequently locked in a 12-month staking agreement with an annualized return ranging between 3.5% and 8%.

Under the proposed reverse split, shareholders holding positions divisible by 160 would see each block converted to a single share. For instance, an investor with 16,000 shares would end up with 100 shares. To prevent loss of value for smaller holders, the company plans to round up fractional shares to the nearest whole number. The consolidation applies to both issued and outstanding shares, pending regulatory clearance from Nasdaq.

Three resolutions are slated for shareholder consideration:
1. Reduce authorized share count from 3 billion shares ($0.0001 par value) to 18.75 million shares ($0.016 par value).
2. Immediately increase authorized shares back to 3 billion at the new par value.
3. Revert par value to $0.0001 per share, restoring prior capital structure.

These adjustments do not create new shares or cause immediate dilution but restore the company’s ability to issue additional equity beyond the temporary cap imposed by the first resolution.

Share figures cited in recent filings provide context for the current base. As of April 20, Digital Currency X reported 19,823,627 Class A shares and 1,334 Class B shares outstanding. A subsequent July 7 filing indicated the issuance of 331,753,557 units—each comprising one Class A share and associated warrants—at a private placement closed July 3. Combined, these bring total known shares to at least 351,577,184 Class A shares and 1,334 Class B shares prior to any warrant exercises or future issuances.

Class A shares carry one vote each at general meetings, while Class B shares hold 20 votes each. Based on the April snapshot, Class B represented 26,680 votes compared to over 19.8 million Class A votes. While the July issuance increased Class A share counts, specific ownership details for the September vote remain undisclosed.

The January consolidation was intended to bring the company into compliance with Nasdaq’s minimum bid price requirements. However, the August meeting materials make no mention of compliance-related motives for the upcoming 160-to-1 split or broader restructuring. Changes in the share base since January mean the two ratios shouldn’t be viewed as sequential steps affecting the same group of investors.

Voting details for the September meeting include a Zoom-only session beginning at 10:00 a.m. Hong Kong time. Shareholders may vote online or via telephone until 11:59 p.m. Eastern Time on September 2. Proxy submissions must arrive at least 48 hours ahead of the meeting.

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