American Bitcoin Corp. (ABTC), a company involved in Bitcoin mining and holding, has announced a significant financial restructuring through a 1-for-15 reverse stock split. The split is set to take effect at 5:00 PM ET on July 2, resulting in a reduction of the total outstanding shares from approximately 1.09 billion to around 73 million. Trading under the ABTC ticker will resume on a split-adjusted basis on July 6, with a new CUSIP number assigned for the shares.
This decision comes in light of the company’s dwindling stock value, which plummeted to a record low of about $0.61 on July 1, raising concerns about compliance with Nasdaq’s requirement for a minimum bid price of $1. The company’s stock has seen a significant decline, dropping over 41% in just a month and nearly 86% over the past year, with year-to-date losses reported at more than 64%. The reverse stock split was approved by shareholders during the annual meeting on June 22 and was finalized by the board shortly after.
The financial struggles facing American Bitcoin are highlighted by a reported loss of $81.8 million in the first quarter, primarily attributed to unrealized losses on Bitcoin holdings. Despite these challenges, the company achieved a milestone in its mining operations, extracting a record 817 BTC in the same quarter and expanding its treasury by acquiring an additional 803 BTC. By the end of March, American Bitcoin held 7,021 BTC, which has since increased to 7,500 BTC, positioning it as the 16th-largest publicly traded holder of Bitcoin.
The move for a reverse stock split aligns with a trend seen in the Bitcoin treasury sector. Earlier this year, Nakamoto, led by David Bailey, executed a 1-for-40 reverse split after its shares also fell below Nasdaq’s minimum requirement. Typically, reverse splits are employed to artificially inflate share prices without impacting the company’s overall market value, though they can often signal underlying weaknesses to investors.
The broader cryptocurrency market is facing its own challenges, with Bitcoin trading at approximately $60,150 as of July 1. This marks a decline of more than 16% over the past month and places prices over 50% below its all-time high of around $126,000 reached in October. This downward trend exerts additional pressure on crypto equity firms, exacerbating existing financial issues.
On July 1, former President Donald Trump reported earning over $1.2 billion from crypto-related ventures in 2025, revealing a personal stake of more than $50 million in Bitcoin, although he noted that investment decisions are primarily handled by his advisors.
