![Crypto Terms Glossary: What is Recapitalization? Crypto Terms Glossary: What is Recapitalization?](/img/38/1173/what-is-recapitalization-sm.webp)
Recapitalization is the process of restructuring a company or related organization's economic structure to make it more economically viable. This is often carried out by modifying the enterprise's debt-to-equity ratio, or by other means. Recapitalization sometimes occurs after a substantial drop in a company's share price in order to minimize taxes, prevent bankruptcy, or to allow investors to sell their shares and exit the investment.