Trump-Backed American Bitcoin Falls 8.4% Ahead of Reverse Stock Split

A fresh low was reached by the Trump sons’ American Bitcoin on Wednesday ahead of the company’s planned reverse stock split, a move intended to support its share price and maintain its Nasdaq listing.

Shares of the Trump family-backed American Bitcoin (ABTC) fell to a record low on Wednesday after a date was set for a 1-for-15 reverse stock split, a move aimed at preserving the company’s listing on the Nasdaq.

American Bitcoin said the reverse stock split will take effect after Thursday’s market close, with trading on a split-adjusted basis scheduled to begin when markets reopen on Monday. The company said the ABTC ticker symbol will be retained.

The company said that every 15 shares of its Class A and Class B common stock will be consolidated into a single share. As a result, the number of outstanding common shares is expected to decline from more than 1 billion to roughly 73 million.

American Bitcoin is the only publicly traded crypto company connected to the Trump family’s expanding interests in the digital asset sector, and a reverse stock split is generally viewed as a negative signal because it is often used by companies seeking to artificially lift their share price during periods of financial pressure.

American Bitcoin said the reverse stock split is intended to support its share price and ensure continued compliance with Nasdaq’s minimum bid price rules, under which delisting can occur if a closing price below $1 is recorded for 30 consecutive trading sessions.

Approval for the reverse stock split was granted by shareholders on June 22.

American Bitcoin Shares Plunge to a Record Low#

Shares of American Bitcoin fell nearly 8.4% to finish Wednesday’s trading session at a record low of 62 cents. A modest recovery was seen in after-hours trading, with the stock climbing 4.5% to around 65 cents.

American Bitcoin’s stock has declined by more than 63% since the beginning of the year, while a drop of over 92% has been recorded since trading under the brand began on the Nasdaq on Sept. 3.

The company was co-founded early last year by Donald Trump Jr. and Eric Trump, the sons of US President Donald Trump.

American Bitcoin was merged with Nasdaq-listed Gryphon Digital Mining to become a publicly traded company, with approximately 98% of the newly formed entity being owned collectively by the Trump brothers and crypto mining firm Hut 8.

The company’s declining share price has coincided with the broader downturn across the crypto market. A first-quarter loss of $81.7 million was reported by American Bitcoin in May.

Reverse stock splits have also been adopted by other crypto firms to help support their share prices. A 1-for-40 reverse stock split was completed by Bitcoin financial services company Nakamoto in May in an effort to preserve its Nasdaq listing after its stock had fallen to a low of 16 cents in April.

Bitcoin (BTC) was trading at approximately $60,000 early Thursday, reflecting a decline of 32% since the beginning of the year, while its price has fallen by more than half from the peak above $126,000 reached in October, according to CoinGecko.