American Bitcoin, the bitcoin mining and treasury company established by Eric Trump and Donald Trump Jr., announced a 1-for-15 reverse stock split scheduled to take effect after market close on Thursday, with trading to resume Monday under the ABTC ticker. The split consolidates every 15 shares of Class A and Class B common stock into 1 share, reducing outstanding shares from approximately 1.09 billion to about 73 million. The company is implementing the split to maintain compliance with Nasdaq's minimum $1 bid requirement after shares fell to a record low of around $0.64 on Wednesday. Shareholders approved the reverse split at the company's annual meeting in June. The move comes as bitcoin treasury companies face listing pressures during a weaker crypto market cycle, with bitcoin down about 30% year to date and more than 50% from its $126,000 all-time high in October.
American Bitcoin Reduces Outstanding Shares from 1.09 Billion to 73 Million
The reverse stock split will take effect after the market close on Thursday. The stock is scheduled to open on a split-adjusted basis on Monday under the same ABTC ticker. Every 15 shares of Class A and Class B common stock will automatically be consolidated into 1 share.
The move will reduce American Bitcoin's outstanding shares from roughly 1.09 billion to about 73 million. Shareholders approved the reverse split at the company's annual meeting in June.
The decision comes after American Bitcoin shares fell to a record low of around $0.64 on Wednesday. The stock is down more than 64% year to date, leaving the company exposed to Nasdaq's minimum bid price rule.
Company Holds 7,500 BTC as Sixteenth-Largest Public Bitcoin Holder
American Bitcoin expanded its bitcoin position during the first quarter. The company mined a record 817 bitcoin and acquired another 803 BTC for its treasury, ending March with 7,021 BTC on its balance sheet.
The company has since increased that total to 7,500 BTC, making American Bitcoin the sixteenth-largest publicly traded bitcoin holder. The larger treasury gives the company more exposure to any future bitcoin recovery, but it also increases sensitivity to further price declines.
American Bitcoin Reports $81.8 Million Q1 Loss on Bitcoin Holdings
American Bitcoin's reverse split comes less than 2 months after the company reported an $81.8 million first-quarter loss, driven mostly by unrealized losses on its bitcoin holdings.
Bitcoin has lost about 30% of its value year to date and has fallen more than 50% from its $126,000 all-time high in October. That decline has weighed directly on companies that hold large bitcoin treasuries because lower spot prices reduce the value of balance-sheet holdings and weaken the investment case for treasury-linked equities.
Nakamoto Completed 1-for-40 Reverse Split in May
Reverse splits are becoming more visible across bitcoin treasury companies as weaker crypto prices put pressure on share prices, balance sheets, and public-market credibility.
In May, Nakamoto announced a 1-for-40 reverse split after its shares traded below Nasdaq's $1 minimum bid requirement for months and eventually fell to a low of $0.14. American Bitcoin's move shows that listing pressure is not limited to one company. It is now part of the broader stress facing bitcoin-linked equities during a weaker market cycle.
A reverse split does not change the underlying value of the company. It reduces the number of shares outstanding and increases the share price on a mechanical basis. The purpose is usually to regain compliance with exchange rules, improve the appearance of the stock price, and reduce the risk of delisting.
FAQ
What is American Bitcoin's reverse stock split ratio?
American Bitcoin announced a 1-for-15 reverse stock split, meaning every 15 shares of Class A and Class B common stock will automatically be consolidated into 1 share. The split takes effect after market close on Thursday, with trading to resume Monday under the ABTC ticker.
Why did American Bitcoin implement a reverse stock split?
The company is implementing the split to maintain compliance with Nasdaq's minimum $1 bid requirement after shares fell to a record low of around $0.64 on Wednesday. The stock is down more than 64% year to date, exposing the company to Nasdaq's minimum bid price rule.
How much bitcoin does American Bitcoin hold?
American Bitcoin holds 7,500 BTC, making it the sixteenth-largest publicly traded bitcoin holder. The company mined a record 817 bitcoin and acquired another 803 BTC during the first quarter, ending March with 7,021 BTC on its balance sheet.
