American Bitcoin Hits 'All-Time Low' Even With Stock Split Card... 'Nasdaq Delisting Crisis'

▲ American Bitcoin (ABTC), Donald Trump Jr., Eric Trump/AI Generated Image

American Bitcoin (ABTC) stock price plummeted to an all-time low ahead of a 15-for-1 reverse stock split aimed at maintaining its Nasdaq listing. Even the symbolic connection to the Trump family as a cryptocurrency mining company could not prevent the sharp decline.

According to cryptocurrency media outlet Cointelegraph on July 2 (local time), American Bitcoin confirmed its plan for a 15-for-1 reverse stock split on Wednesday. The split will take effect after market close on Thursday, and trading will begin on a split-adjusted basis from Monday's open. The ticker will remain ABTC.

This measure will reclassify 15 shares of Class A and Class B common stock into 1 share. The company expects the number of outstanding common shares to decrease from over 1 billion to approximately 73 million. American Bitcoin explained that this decision was made to meet Nasdaq's minimum bid price requirement.

Nasdaq can initiate delisting procedures if a stock's closing price remains below $1 for 30 consecutive trading days. Shareholders approved the stock split plan on June 22. In the market, reverse stock splits are often interpreted as a typical response from companies facing increased pressure to defend their stock price.

American Bitcoin's stock price fell by nearly 8.4% on Wednesday, closing at $0.62, an all-time low closing price. In after-hours trading, it rebounded by 4.5% to $0.65. The stock has fallen by over 63% this year and by over 92% since it began trading on Nasdaq on September 3 last year.

American Bitcoin was co-founded by Donald Trump Jr. and Eric Trump early last year. It subsequently went public through a reverse merger with Nasdaq-listed Gryphon Digital Mining. The Trump brothers and cryptocurrency mining company Hut 8 hold approximately 98% of the new company's shares. The company reported a first-quarter loss of $81.7 million in May. The general financial burden on cryptocurrency mining stocks is increasing, compounded by the bearish Bitcoin (BTC) market.

[Article Summary]

-American Bitcoin is undergoing a 15-for-1 reverse stock split to maintain its Nasdaq listing.

-The stock price fell by nearly 8.4% on Wednesday, closing at $0.62, an all-time low.

-The company, in which the Trump brothers and Hut 8 hold approximately 98% of the shares, reported a first-quarter loss of $81.7 million.

*Disclaimer: This article is for investment reference only, and we are not responsible for any investment losses based on it. The content should be interpreted for informational purposes only.*