Consumer staples stock surges 1,600% amid crypto pivot

CIMG Inc. a small-cap consumer staples and packaged-foods company surges more than 1600% on Dec. 4, after announcing a 20-for-1 reverse stock split aimed at regaining compliance with Nasdaq listing requirements.

The company, which trades under CIMG (IMG), said the consolidation will take effect Dec. 5, 2025, at 12:01 AM ET.  At the time of publishing, the stock was trading at $2.4, up 13% in pre-market.

As part of the restructuring, CIMG’s outstanding share count will fall sharply from 309,667,840 to roughly 15,483,392 shares.

Related: Mysterious stock surged 2,600% despite Bitcoin’s crash

CIMG is categorized under Packaged Foods or Consumer Defensive, placing it in the consumer staples sector, typically home to companies selling everyday necessities like pantry items, food ingredients, or household staples.

Reverse split doesn’t mean the company is worth more

A reverse split does not increase the company’s market value. 

It simply reduces the number of shares while raising the price per share proportionally. The move is generally used by distressed or non-compliant companies facing delisting risk not a sign of improved fundamentals.

As the company put it:

“CIMG (IMG) announced on Wednesday a 20-for-1 reverse stock split to regain compliance with Nasdaq rules.”

CIMG became involved in AI-adjacent restructuring rumors, low-float trading dynamics, and a surge in short-term retail interest. But none of that changed the company’s underlying financial picture. CIMG remains unprofitable with EPS at –13.33, a tiny $32.8 million market cap.

Post–reverse split selloffs are common, particularly for micro-caps with weak balance sheets. 

With CIMG’s average trading volume surging from 214K shares to nearly 3 million shares, volatility has spiked in both directions.

More News:

• House considers insider trading ban as government shutdown comes to an end
• Billionaire twins–backed stock surges 100% after buying $50M ‘encrypted Bitcoin’
• MicroStrategy stock drops 60% from peak as mNAV approaches 1

CIMG deepens crypto pivot

On Sept. 3, CIMG added 500 BTC to its balance sheet and signaled plans to expand into tokenized digital-asset products.

The move follows the company’s $55 million stock sale announced earlier this year, completed through a 220 million-share private placement under Regulation S. According to the company:

The acquisition of 500 BTC places CIMG among a growing class of “Bitcoin treasury companies” attempting to mirror the MicroStrategy-style playbook, raising capital to buy BTC.

Beyond simply buying Bitcoin, CIMG is also exploring tokenized product initiatives connected to its partnerships across crypto and AI.

Public companies now hold just over 1.06 million BTC on their balance sheets — about 5% of Bitcoin’s fixed 21 million supply — according to data from BitcoinTreasuries, which tracks listed firms, ETFs, governments and other large holders.

The biggest corporate stack belongs to MicroStrategy, with around 650,000 BTC, followed by large miners like MARA Holdings and other Bitcoin-focused vehicles such as XXI and Bitcoin Standard Treasury.

Related: Analyst predicts 90% surge for sinking crypto stock