TLDR
- American Bitcoin will implement a 1-for-15 reverse stock split.
- ABTC fell over 8% and touched a record low before the split.
- The split will reduce shares from about 1.09B to 73M.
- American Bitcoin holds 7,500 BTC on its balance sheet.
- The company aims to regain Nasdaq minimum bid compliance.
American Bitcoin Corp. shares fell more than 8% after the Bitcoin mining and treasury company announced a 1-for-15 reverse stock split to regain compliance with Nasdaq listing rules.
The company, co-founded by Eric Trump and majority-owned by Hut 8, said the reverse split will take effect after market close on July 2. Shares are expected to begin trading on a split-adjusted basis on July 6 under the same ABTC ticker.
ABTC closed at $0.6241, down 8.37%, after touching a record low near $0.6122. The stock has fallen more than 64% this year and is down sharply over the past 12 months as Bitcoin and crypto-linked equities remain under pressure.
American Bitcoin Plans 1-for-15 Reverse Split
American Bitcoin said every 15 shares of its Class A and Class B common stock will convert into one share. The move will reduce outstanding shares from roughly 1.09 billion to about 73 million.
The company said shareholders do not need to take action. Any fractional shares created by the reverse split will be cashed out.
The reverse split was approved by shareholders at the annual meeting on June 22. The board later finalized the ratio at 1-for-15.
The company said the main goal is to raise the per-share price and support compliance with the Nasdaq Capital Market’s minimum bid price requirement. Nasdaq rules require listed companies to maintain a minimum share price.
ABTC Falls to New Low Before Split
American Bitcoin shares dropped despite the planned split. The stock traded below $1, which placed focus on the company’s Nasdaq listing status.
Reverse stock splits do not change a company’s total market value by themselves. They mechanically reduce the number of shares and raise the per-share price.
Investors often view reverse splits with caution because they can follow long share-price declines. In American Bitcoin’s case, the move comes after a steep fall in both ABTC and Bitcoin-linked stocks.
The company went public through a merger process last September as Hut 8 expanded its Bitcoin infrastructure strategy. American Bitcoin runs mining operations and also holds Bitcoin on its balance sheet.
Bitcoin Decline Pressures Treasury Stocks
American Bitcoin’s stock decline follows weakness in Bitcoin. BTC recently traded near $60,150 after falling below $58,000 overnight, its lowest level in 21 months.
Bitcoin remains down more than 50% from its record high above $126,000 last October and lost about 30% of its value this year.
The decline has weighed on Bitcoin treasury companies because their valuations are tied closely to Bitcoin prices. American Bitcoin reported an $81.8 million first-quarter loss, driven mostly by unrealized losses on its Bitcoin holdings.
Other Bitcoin treasury firms have also used reverse splits. In May, Nakamoto announced a 1-for-40 reverse split after NAKA shares traded below Nasdaq’s $1 minimum bid requirement for months.
American Bitcoin Holds 7,500 BTC
American Bitcoin mined a record 817 BTC in the first quarter and acquired another 803 BTC for its treasury. The company ended March with 7,021 BTC on its balance sheet.
Its holdings have since increased to 7,500 BTC, making it the sixteenth-largest publicly traded Bitcoin holder, according to BitcoinTreasuries data cited in reports.
The company’s Bitcoin holdings remain central to its business model. However, lower BTC prices have increased pressure on the value of its treasury and investor confidence in crypto-linked equities.
President Donald Trump’s broader crypto business ties have also drawn attention to companies linked to his family. Trump recently disclosed more than $1.2 billion in crypto-related business income for 2025 and said advisers handle personal investment decisions.
American Bitcoin’s next focus will be whether the reverse split helps it regain Nasdaq compliance and whether Bitcoin’s price stabilizes enough to ease pressure on its mining and treasury strategy.
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