American Bitcoin sets reverse stock split to maintain Nasdaq listing

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American Bitcoin reverse stock split

Highlights

American Bitcoin will conduct a 1-for-15 reverse stock split effective after Thursday's close, aiming to reduce outstanding shares from over 1 billion to about 73 million and maintain Nasdaq listing.
American Bitcoin shares closed Wednesday at an all-time low of 62 cents, down over 63% year-to-date and more than 92% since its Nasdaq debut on Sept. 3.
American Bitcoin posted a first-quarter loss of $81.7 million amid ongoing crypto sector weakness, mirroring other firms like Nakamoto that also executed reverse splits to retain Nasdaq status.

Reverse split plan and listing timeline

As reported by Cointelegraph, American Bitcoin says its 1-for-15 reverse stock split takes effect after the market closes Thursday, with split-adjusted trading under the ABTC ticker beginning when the market opens Monday.

The company says every 15 shares of its Class A and B common stock will be reclassified into one share. It expects the number of outstanding common shares to fall from more than 1 billion to about 73 million. Shareholders approved the reverse stock split on June 22.

American Bitcoin says the move is intended to keep the company in compliance with Nasdaq's minimum bid rules, which allow the exchange to delist a stock if it closes below $1 for 30 consecutive trading days. Reverse stock splits are often viewed negatively by investors because they can signal financial stress and an effort to mechanically lift a depressed share price.

Share price pressure across the crypto sector

American Bitcoin shares fell nearly 8.4% on Wednesday to close at an all-time low of 62 cents, before edging up 4.5% to 65 cents in after-hours trading. The stock is down more than 63% this year and more than 92% since it began trading on Nasdaq on Sept. 3.

The company was co-founded early last year by Donald Trump Jr. and Eric Trump. American Bitcoin went public through a merger with Nasdaq-listed Gryphon Digital Mining, with the Trump brothers and crypto miner Hut 8 together holding about 98% of the combined company.

The decline in the stock comes as crypto markets remain under pressure. American Bitcoin reported in May a first-quarter loss of $81.7 million, while other crypto-linked companies have also used reverse splits to support their Nasdaq status, including Nakamoto, which completed a 1-for-40 consolidation in May after its shares fell to 16 cents in April. Bitcoin is trading at about $60,000 early Thursday, down 32% this year after falling by more than half from its October peak above $126,000, according to CoinGecko.

In our earlier analysis of Hut 8 (HUT), we noted that the stock was under strong short- and medium-term selling pressure, trading below key moving averages with multiple momentum indicators pointing bearish. The report highlighted a likely near-term trading range and warned that downside risk could persist unless HUT reclaimed key resistance levels, reinforcing a cautious stance for traders.

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