Summary
- American Bitcoin Corp. plans a 1-for-15 reverse stock split on July 2.
- This strategy aims to enhance the per-share price, ensuring compliance with Nasdaq's minimum bid price requirement.
- Shares of ABTC reached a new low on Wednesday, declining 41% over the past month.
American Bitcoin Corp., a Bitcoin mining and accumulation firm co-founded by Eric Trump and primarily owned by Hut 8 Corp., has announced a 1-for-15 reverse stock split. This action is intended to raise its stock price above the minimum listing requirement set by Nasdaq.
The reverse split will take effect at 5 p.m. ET on July 2, with trading on a split-adjusted basis starting on July 6. The stock will maintain its ticker symbol ABTC, but will have a new CUSIP number.
On Wednesday, ABTC shares hit their lowest price ever, falling to $0.6122 according to Yahoo Finance data. Currently priced at $0.636, American Bitcoin has seen a decline of over 41% in the last month, reflecting a broader downturn in the cryptocurrency market and related stocks. In the past year, the shares have plummeted nearly 86%.
With this plan, 15 shares of the company's Class A and Class B common stock will convert into one share. This will reduce American Bitcoin's total share count from approximately 1.09 billion to around 73 million. The company has stated that this reduction is primarily aimed at increasing the per-share price and maintaining its Nasdaq Capital Market listing, which requires stocks to have a minimum bid price. Shareholders will not need to take any action, and any fractional shares resulting from the split will be cashed out.
Shareholders approved the reverse split at the annual meeting on June 22, which was subsequently confirmed by the board at the 1-for-15 ratio.
While reverse splits are often used by companies with low share prices to comply with exchange regulations, investors sometimes interpret them as a sign of weakness rather than strength, as they artificially inflate the share price without altering the company's actual market value.
American Bitcoin, which operates large-scale mining facilities and accumulates Bitcoin on its balance sheet, went public through a merger last September as part of Hut 8's initiative to enhance what it describes as America's Bitcoin infrastructure backbone.
Currently, Bitcoin is trading around $60,150, down 16% over the past month but recovering from a 21-month low of under $58,000 reached recently. The leading cryptocurrency is still more than 50% below its all-time high of over $126,000 from last October.
On Tuesday, Donald Trump, Eric Trump's father, revealed that he earned more than $1.2 billion from crypto-related ventures in 2025 and possesses over $50 million in Bitcoin. Trump downplayed criticisms regarding this disclosure, stating in a press conference that he does not “get involved” in personal investment decisions, delegating such matters to his advisors.