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The reverse split takes effect after Thursday's market close, and it is intended to restore compliance with Nasdaq's $1 minimum bid requirement after the stock declined more than 63% this year.
American Bitcoin Stock Sinks
American Bitcoin, the Trump family-backed crypto mining company, saw its shares fall to a record low on Wednesday after announcing plans to implement a 1-for-15 reverse stock split to maintain its Nasdaq listing.
The company confirmed that the reverse stock split will take effect after the market closes on Thursday, with trading on a split-adjusted basis scheduled to begin when markets open on Monday. Despite the restructuring, the company will continue trading under the ticker symbol ABTC.
Press release from American Bitcoin
Under the reverse stock split, every 15 shares of American Bitcoin's Class A and Class B common stock will be consolidated into a single share. As a result, the company's total outstanding shares are expected to decline from more than one billion to approximately 73 million. While a reverse stock split increases the price of individual shares by reducing the total number in circulation, it does not change the company's overall market value.
The move is seen as an attempt to regain compliance with Nasdaq's listing requirements. The exchange requires listed companies to maintain a minimum closing share price of $1. If a company's stock trades below that threshold for 30 consecutive trading days, it risks being delisted unless corrective measures are taken. American Bitcoin said the reverse split is intended to bring its share price back above the minimum requirement and preserve its place on the exchange. Shareholders approved the proposal on June 22.
Investors reacted negatively to the announcement by sending American Bitcoin shares down nearly 8.4% during Wednesday's trading session to close at an all-time low of $0.62. The stock recovered slightly in after-hours trading to approximately $0.65, but it is still under a lot of pressure.
ABTC’s price over the past day (Source: Google Finance)
The company's performance has been weak throughout 2026. American Bitcoin shares have fallen more than 63% since the start of the year and are down more than 92% from their peak after the company's Nasdaq debut on Sept. 3.
American Bitcoin occupies a unique position in the Trump crypto ecosystem because it is the only publicly traded cryptocurrency company directly tied to the Trump family's involvement in the digital asset industry. The company was co-founded early last year by Donald Trump Jr. and Eric Trump as part of the family's expansion into crypto businesses.
The company became publicly listed after merging with Nasdaq-listed Gryphon Digital Mining. After the transaction, Donald Trump Jr., Eric Trump, and crypto mining firm Hut 8 collectively retained ownership of approximately 98% of the newly formed company, giving the founding group overwhelming control over the business.
While reverse stock splits are not uncommon among struggling public companies, they are often interpreted by investors as a sign of financial distress because they are typically used to satisfy exchange listing requirements rather than reflect improving business fundamentals. American Bitcoin will now be hoping that maintaining its Nasdaq listing gives it enough time to stabilize its operations and restore investor confidence.