American Bitcoin stock hits record low before 1-for-15 reverse split
In brief
- ABTC shares hit record low of $0.6122 on Wednesday, down 41% monthly
- American Bitcoin announced 1-for-15 reverse split effective July 2, consolidating 1.09 billion shares
- Reverse split aims to boost per-share price and maintain Nasdaq Capital Market listing
- Bitcoin itself fell 16% monthly and 50% from $126,000 all-time high
Stock pressure mounts before consolidation
ABTC shares have declined more than 41% in the last month, falling sharply alongside a broader downturn in Bitcoin and crypto-linked equities. Shares have fallen nearly 86% over the last year, reflecting sustained weakness in the mining sector. The company went public through a merger process in September, and the stock has struggled to maintain investor confidence since listing.
The reverse split addresses an immediate regulatory concern. The split will take effect at 5 p.m. ET on July 2, with shares expected to begin trading on a split-adjusted basis when markets open July 6. Under the plan, every 15 shares of American Bitcoin's outstanding Class A and Class B common stock will be converted into a single share. The maneuver will shrink American Bitcoin's total share count from roughly 1.09 billion to about 73 million.
Why reverse splits matter
The split is designed primarily to boost per-share price and preserve American Bitcoin's Nasdaq Capital Market listing. Nasdaq maintains minimum price thresholds for listed securities, and sustained trading below those levels can trigger delisting. The split was approved by shareholders at the company's annual meeting on June 22 and finalized by its board.
Reverse splits are common tools for companies whose share prices have fallen too low to satisfy exchange rules, though they're sometimes viewed by investors as a signal of underlying weakness rather than strength, since they mechanically raise the price per share without changing a company's actual market value.
Broader crypto downturn
American Bitcoin's struggles mirror weakness across digital assets. Bitcoin was recently trading near $60,150, down 16% over the last month but up from a 21-month low under $58,000 set over the prior week. The leading cryptocurrency is now down more than 50% from an all-time peak price above $126,000 set last October.
The broader context matters. On Tuesday, President Donald Trump disclosed that he earned more than $1.2 billion from crypto-related businesses in 2025, and holds over $50 million in Bitcoin. Yet despite Trump administration support for crypto, mining equities and Bitcoin itself remain under pressure from macroeconomic headwinds and market sentiment shifts.
