Key facts
- American Bitcoin Corp. will execute a 1-for-15 reverse stock split on July 2.
- The split aims to boost the per-share price to meet Nasdaq's minimum listing threshold.
- ABTC shares hit a new low of $0.6122 on Wednesday.
- The company's stock has declined over 41% in the past month.
- The split will reduce the total share count from approximately 1.09 billion to 73 million.
American Bitcoin Corp. is set to implement a 1-for-15 reverse stock split on July 2, a move designed to increase its per-share price and comply with Nasdaq's minimum bid price rule. The company's stock has experienced a significant decline, touching a new low of $0.6122 on Wednesday and falling over 41% in the past month. This maneuver will reduce the total number of outstanding shares from approximately 1.09 billion to about 73 million. Shareholders will not need to take action, and any fractional shares will be cashed out. The split was approved by shareholders and finalized by the board. Reverse splits are often seen as a measure for companies struggling to maintain exchange listing requirements. American Bitcoin, co-founded by Eric Trump and majority-owned by Hut 8 Corp., operates large-scale mining and accumulates Bitcoin. Bitcoin itself has recently traded near $60,150, down 16% over the last month. Separately, Donald Trump disclosed significant earnings from crypto-related businesses.