American Bitcoin Corp. Set for Reverse Stock Split Amid Price Drop

American Bitcoin Corp. to Implement 1-for-15 Reverse Stock Split

American Bitcoin Corp., co-founded by Eric Trump and primarily owned by Hut 8 Corp., is set to execute a 1-for-15 reverse stock split on July 2. This move is designed to elevate its stock price above Nasdaq's minimum bid price requirement.

The split, effective at 5 p.m. ET, will convert 15 shares into one, reducing the total share count from approximately 1.09 billion to around 73 million. Trading on a split-adjusted basis will begin on July 6, with the ticker symbol ABTC remaining unchanged.

ABTC shares recently hit a record low of $0.6122 and are currently priced at $0.636, marking a 41% decline over the past month and nearly an 86% drop over the past year. The company aims to comply with Nasdaq regulations through this change, though reverse splits can be viewed as a sign of financial instability.

Approval for the reverse split was granted by shareholders at the annual meeting on June 22, and the company has stated that no action is required from shareholders, as any resulting fractional shares will be cashed out.

American Bitcoin operates large-scale mining operations and has taken steps to enhance the infrastructure of Bitcoin in the U.S. Despite recent volatility, Bitcoin's price is currently around $60,150, having recovered slightly from a recent low of under $58,000.

"The reverse stock split is a strategic move aimed at maintaining our listing on Nasdaq," the company indicated.