American Bitcoin executes 1-for-15 reverse split for Nasdaq compliance

Holdings and Operations

American Bitcoin's Bitcoin holdings grew from roughly 5,401 BTC at the end of 2025 to about 7,021 BTC as of March 31, 2026, according to its first-quarter SEC filing. The company then acquired additional holdings, reaching the 8,000 BTC milestone announced separately.

During the first quarter, American Bitcoin reported mining about 817 BTC and purchasing another 803 BTC. Mining gross margin stayed above 50% despite a roughly 22% quarter-over-quarter decline in Bitcoin's price.

Financial results painted a mixed picture. The company reported approximately $62.1 million in Q1 2026 mining revenue, an $81.8 million net loss, negative adjusted EBITDA of about $91.3 million, and a $117.2 million loss on digital assets.

Reverse Split and Nasdaq Compliance

American Bitcoin said the reverse split was primarily intended to raise the price of its Class A stock to meet Nasdaq's minimum bid requirement. Shareholders approved a reverse split range of 1-for-5 to 1-for-40, and the board later approved the 1-for-15 ratio after the annual meeting.

The company issued several risk warnings. American Bitcoin warned that the share price might not rise in proportion to the reduction in outstanding shares. It also said that the split might fail to attract new investors and could be negatively received by the market. The split may reduce liquidity and increase transaction costs for holders left with odd-lot positions.

Structural issues remain. American Bitcoin's authorized share count would stay unchanged after the reverse split, limiting the long-term benefit of the maneuver.

"American Bitcoin said the reverse split was primarily intended to raise the price of its Class A stock to meet Nasdaq's minimum bid requirement."