American Bitcoin, the Trump family-backed crypto mining company, saw its shares fall to a record low on Wednesday after announcing a 1-for-15 reverse stock split. The reverse split takes effect after Thursday's market close, with trading on a split-adjusted basis scheduled to begin when markets open on Monday. The move is intended to restore compliance with Nasdaq's $1 minimum bid requirement after the stock declined more than 63% this year. The exchange requires listed companies to maintain a minimum closing share price of $1, and companies trading below that threshold for 30 consecutive trading days risk delisting unless corrective measures are taken.
American Bitcoin Implements 1-for-15 Reverse Stock Split
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.
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.
![Press release from American Bitcoin]()
Nasdaq Compliance Requirement Drives Restructuring Decision
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.
Shares Fall 8.4% to Record Low of $0.62
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 the year. 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.
Trump Family Retains 98% Ownership After Gryphon Merger
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.
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 be consolidated into a single share. The reverse split takes effect after Thursday's market close, with trading on a split-adjusted basis beginning when markets open on Monday. The company will continue trading under the ticker symbol ABTC.
Why did American Bitcoin implement a reverse stock split?
The reverse stock split is intended to restore compliance with Nasdaq's $1 minimum bid requirement. The exchange requires listed companies to maintain a minimum closing share price of $1, and companies trading below that threshold for 30 consecutive trading days risk delisting unless corrective measures are taken. American Bitcoin shares declined more than 63% this year, falling below the required minimum. Shareholders approved the proposal on June 22.
How much have American Bitcoin stocks declined?
American Bitcoin shares fell 8.4% during Wednesday's trading session to close at an all-time low of $0.62. The stock has fallen more than 63% since the start of the year and is down more than 92% from its peak after the company's Nasdaq debut on Sept. 3. The stock recovered slightly in after-hours trading to approximately $0.65.
