American Bitcoin (ABTC), the Bitcoin mining and treasury company backed by Eric Trump, Donald Trump Jr., and majority-owned by Hut 8, is moving forward with a 1-for-15 reverse stock split after its shares fell to an all-time low. The decision comes as the company works to maintain its Nasdaq listing by lifting its stock price above the exchange’s minimum bid requirement. Despite aggressively expanding its Bitcoin treasury, prolonged weakness in both the crypto market and mining sector has placed significant pressure on the company’s share price.
The reverse split became effective after the close of trading on July 2, with split-adjusted shares scheduled to begin trading on July 6 under the same ABTC ticker. Although reverse stock splits are often viewed negatively because they can signal financial stress, American Bitcoin says the restructuring is intended to strengthen its position on Nasdaq while preserving access to institutional capital markets.
Shares Fell to a New All-Time Low
American Bitcoin’s stock declined to approximately $0.61 per share, extending a difficult year for the company.
The stock has fallen more than 85% over the past year and remains more than 90% below its post-listing highs. The decline reflects weakness across the crypto mining sector as lower Bitcoin prices, higher operating costs, and tighter financial conditions have pressured publicly traded mining companies.
To remain listed on Nasdaq, companies generally must maintain a closing share price above $1, making the reverse split a necessary step toward regaining compliance.
How the Reverse Stock Split Works
The company’s board approved a 1-for-15 reverse stock split, dramatically reducing the total number of outstanding shares while proportionally increasing the share price.
Under the restructuring:
- Every 15 existing shares become 1 new share.
- Outstanding shares decline from approximately 1.09 billion to about 73 million.
- The trading symbol remains ABTC.
- Existing shareholders retain the same proportional ownership in the company.
The reverse split does not change the company’s overall market value. Instead, it consolidates shares to increase the trading price and satisfy Nasdaq’s listing requirements. Fractional shares will be redeemed for cash.
Nasdaq Compliance Drives the Decision
The primary objective of the reverse split is maintaining American Bitcoin’s listing on the Nasdaq Capital Market.
Nasdaq requires listed companies to maintain a minimum bid price of $1.00. Prolonged trading below that threshold can ultimately lead to delisting proceedings. By increasing the stock’s per-share price through a reverse split, American Bitcoin hopes to regain compliance while remaining accessible to institutional investors that often avoid penny stocks.
The reverse split was approved by shareholders during the company’s annual meeting on June 22, after which the board finalized the 1-for-15 ratio.
Bitcoin Treasury Strategy Remains Intact
Despite its declining stock price, American Bitcoin continues expanding its long-term Bitcoin strategy.
The company remains focused on mining Bitcoin while accumulating BTC as a treasury reserve asset. According to recent reports, American Bitcoin holds roughly 7,500 BTC, making it one of the larger publicly traded corporate Bitcoin holders. Management has repeatedly stated that its long-term strategy centers on building Bitcoin reserves rather than reacting to short-term market volatility.
Executives argue that while equity markets have been challenging, their conviction in Bitcoin’s long-term value remains unchanged.
Crypto Mining Companies Face a Difficult Market
American Bitcoin’s challenges reflect broader conditions affecting the crypto mining industry.
Throughout 2026, many publicly traded mining companies have struggled with:
- Lower Bitcoin prices.
- Reduced mining profitability.
- Higher operating costs.
- Investor rotation toward AI-related companies.
- Weak capital market conditions.
Several mining firms have responded by expanding into AI infrastructure, high-performance computing, and data center services to diversify revenue beyond Bitcoin mining alone.
Reverse Splits Have Become More Common
American Bitcoin is not alone in pursuing this strategy.
Several publicly traded Bitcoin-focused companies have recently announced reverse stock splits to remain compliant with exchange listing requirements as crypto markets weakened. While these restructurings improve a company’s share price mechanically, they do not improve underlying business fundamentals or profitability.
Ultimately, long-term performance will depend on Bitcoin prices, operational efficiency, mining economics, and the company’s ability to continue growing its digital asset reserves.
