American Bitcoin Shares Hit Record Low After Setting 1-for-15 Reverse Stock Split

Shares of Trump family-backed crypto miner American Bitcoin (ABTC) fell to an all-time low on Wednesday after the company set a date for a 1-for-15 reverse stock split aimed at maintaining its Nasdaq listing. According to Cointelegraph, American Bitcoin said the reverse split will take effect after the market closes Thursday, with trading on a split-adjusted basis set to begin when the market opens Monday under the same ABTC ticker. The company said each 15 shares of its Class A and Class B common stock will be reclassified into one share, reducing outstanding common shares from more than 1 billion to about 73 million. American Bitcoin said the move is intended to support its share price and keep the company in compliance with Nasdaq’s minimum bid requirements, which can trigger delisting if a stock closes below $1 for 30 consecutive trading days. Shareholders approved the reverse stock split on June 22. Reverse stock splits are typically viewed negatively because they can signal financial distress and an attempt to artificially lift a company’s share price. American Bitcoin shares dropped nearly 8.4% to close Wednesday at 62 cents, marking an all-time low. The stock rose 4.5% after hours to 65 cents. The company’s shares are down more than 63% so far this year and have fallen more than 92% since the brand began trading on the Nasdaq on Sept. 3. American Bitcoin was co-founded early last year by U.S. President Donald Trump’s sons, Donald Trump Jr. and Eric Trump. American Bitcoin went public through a merger with Nasdaq-listed Gryphon Digital Mining, with the Trump brothers and crypto miner Hut 8 together owning around 98% of the newly formed company. The company’s declining share price comes as the broader crypto market has weakened. American Bitcoin reported in May that it lost $81.7 million in the first quarter. Other crypto-related firms have also used reverse stock splits to support their share prices, including Bitcoin financial services company Nakamoto, which completed a 1-for-40 reverse stock split in May after its shares reached a low of 16 cents in April.