Trump-Backed American Bitcoin Approves Reverse Stock Split as Shares Sink Below $1

American Bitcoin, the crypto mining firm backed by Donald Trump Jr. and Eric Trump, is moving forward with a 1-for-15 reverse stock split after its shares plunged to a new record low, underscoring mounting pressure on the company's public market performance.

The reverse stock split will become effective after the market closes on Thursday, with trading on a split-adjusted basis scheduled to begin Monday under the existing ABTC ticker. Under the plan, every 15 shares of the company's Class A and Class B common stock will be consolidated into a single share, reducing the total number of outstanding shares from more than 1 billion to roughly 73 million.

The move is intended to help the company satisfy Nasdaq's minimum bid price requirement. Companies listed on the exchange risk delisting if their shares remain below $1 at the close of trading for 30 consecutive business days.

American Bitcoin shares fell 8.4% on Wednesday to close at a record low of $0.62 before recovering modestly in after-hours trading to around $0.65. Despite the slight rebound, the stock has declined more than 63% since the start of the year and is down over 92% from its Nasdaq debut in September.

Reverse stock splits are often viewed as a warning sign by investors because they typically reflect efforts by struggling companies to increase their share price without changing the underlying value of the business.

The company, launched by Donald Trump Jr. and Eric Trump in early 2025, entered public markets through a merger with Gryphon Digital Mining. Following the transaction, the Trump brothers and crypto mining company Hut 8 collectively retained approximately 98% ownership of the combined entity.

American Bitcoin's declining valuation comes as the broader digital asset industry faces weaker market conditions. The company reported an $81.7 million net loss during the first quarter, adding to investor concerns about its financial outlook.

It is not alone in using a reverse stock split to preserve its exchange listing. Earlier this year, Bitcoin-focused financial services firm Nakamoto completed a 1-for-40 reverse split after its shares fell to just $0.16 before recovering enough to remain Nasdaq compliant.

Meanwhile, Bitcoin continued to trade under pressure, hovering near $60,000 early Thursday after retreating roughly 32% year-to-date and remaining well below its previous all-time high above $126,000 reached last October.