Trump’s American Bitcoin Drops 8.4% Before Reverse Split to Stay Listed
American Bitcoin (ABTC) is set to complete a 1-for-15 reverse stock split as it tries to remain listed on Nasdaq, a move that arrives as the company’s shares sink to fresh lows. The miner said the split becomes effective after the market closes on Thursday and will be reflected in trading on a split-adjusted basis when the market opens Monday, with the stock continuing to trade under the ABTC ticker.
Under the plan, every 15 shares of the company’s Class A and Class B common stock will be consolidated into a single share. American Bitcoin expects that its share count will fall from more than 1 billion outstanding shares to about 73 million. According to the company’s release, shareholders approved the reverse split on June 22, and the company now aims to satisfy Nasdaq’s minimum bid rules.
Key takeaways
- ABTC’s 1-for-15 reverse stock split takes effect after Thursday’s market close and begins trading on a split-adjusted basis on Monday.
- American Bitcoin expects its outstanding shares to drop from over 1 billion to roughly 73 million while keeping the ABTC ticker.
- The company’s stated reason is to maintain compliance with Nasdaq’s requirement that the stock not trade below $1 for 30 consecutive sessions.
- Shares fell to an all-time low of 62 cents on Wednesday, down nearly 8.4% on the day, before a modest after-hours rebound.
- The move reflects a broader pattern among crypto-related public companies using reverse splits to address prolonged weakness in share prices.
Reverse split scheduled to protect Nasdaq listing
Reverse stock splits are often viewed by investors as a sign that a company is struggling to keep its stock above exchange listing thresholds. In American Bitcoin’s case, the company explicitly tied the action to Nasdaq’s minimum bid requirements, which can lead to delisting if a stock closes below $1 for 30 consecutive trading days.
American Bitcoin said it is implementing the consolidation to support its share price and maintain compliance with those rules. The company also confirmed that it would continue trading under the ABTC ticker through the process.
Shares hit a record low as crypto equities remain under pressure
Wednesday’s trading brought another sharp decline for ABTC. Shares fell nearly 8.4% to close at an all-time low of 62 cents. After the close, the stock reportedly edged higher by about 4.5% to 65 cents in after-hours trading.
The stock’s broader performance has been weak. American Bitcoin is down more than 63% year-to-date and has fallen more than 92% since it began trading on Nasdaq on Sept. 3, when the company launched through a merger process involving a publicly listed crypto mining entity.
American Bitcoin was founded earlier this year by Donald Trump Jr. and Eric Trump, according to the company’s background described in the reporting. The business merged with Nasdaq-listed Gryphon Digital Mining to go public, with the Trump brothers and crypto miner Hut 8 together holding roughly 98% of the combined company.
Financial results and market turbulence weigh on the stock
American Bitcoin’s share weakness is unfolding amid a wider downturn affecting parts of the crypto market and the equities that trade as proxies for it. In May, the company reported that it lost $81.7 million in the first quarter, with the figure cited in earlier coverage from Cointelegraph.
Reverse splits can help companies avoid immediate delisting pressures, but they do not address underlying business fundamentals. For traders, that means investors may still be exposed to the same operational risks—especially in a sector where revenue can be influenced by factors such as mining economics, digital asset prices, and cost structures.
Bitcoin itself was trading around $60,000 in early Thursday trading, down 32% so far this year and more than halved from its October peak of above $126,000, according to CoinGecko.
Broader trend: crypto firms use reverse splits to stay listed
American Bitcoin is not alone in turning to reverse stock splits to manage listing compliance. Another example cited in the reporting is Bitcoin treasury company Nakamoto, which completed a 1-for-40 reverse stock split in May after its shares reached a low of 16 cents in April, also in an effort to remain on Nasdaq.
The pattern is notable because it highlights a recurring tension for crypto-linked equities: when digital assets or mining sentiment deteriorate, smaller-cap listed firms can quickly slip below exchange price floors. Reverse splits can temporarily alter the math of share price—though they leave investors’ proportional exposure unchanged in most cases—while companies work to stabilize operations or regain market confidence.
For ABTC holders, the immediate practical impact is timing. With the split scheduled to take effect after Thursday’s close and begin reflecting on Monday’s open, investors will want to watch how the market recalibrates around the new share count and whether trading volume or liquidity dynamics change after the adjustment.
Going forward, the key unknown is whether the company can sustain its share price long enough to satisfy Nasdaq’s ongoing $1 minimum-bid condition. The next few trading weeks will be the real test: the exchange compliance clock runs on consecutive closing prices, so investors should track ABTC’s daily closes after the effective date to see whether the reverse split achieves its intended listing protection.
This article was originally published as Trump’s American Bitcoin Drops 8.4% Before Reverse Split to Stay Listed on Crypto Breaking News – your trusted source for crypto news, Bitcoin news, and blockchain updates.
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