Key facts
- American Bitcoin Corp. will execute a 1-for-15 reverse stock split effective July 2.
- The split aims to boost the share price to meet Nasdaq's minimum bid price requirement.
- ABTC shares closed at an all-time low of $0.62 on Wednesday.
- The company's stock has fallen over 63% year-to-date.
- The split will reduce outstanding shares from over 1 billion to approximately 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 all-time low of $0.62 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 on June 22 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 Donald Trump's sons Donald Trump Jr. and Eric Trump, and majority-owned by Hut 8 Corp., operates large-scale mining and accumulates Bitcoin. The company reported a $81.7 million loss in the first quarter. Bitcoin itself was trading around $60,000 early Thursday.