Trump-backed American Bitcoin sets 1-for-15 reverse stock split in bid to maintain Nasdaq listing

American Bitcoin, the bitcoin mining and treasury company established by Eric Trump and Donald Trump Jr., said on Wednesday it would implement a 1-for-15 reverse stock split next week as it looks to maintain compliance with Nasdaq's minimum $1 bid requirement.

The reverse split goes into effect after market close on Thursday and will open on a split-adjusted basis on Monday under the same ABTC ticker.

This means that every 15 shares of Class A and B common stock will automatically be consolidated into one share, reducing the total outstanding shares from roughly 1.09 billion to around 73 million. The split was approved by shareholders at the company's annual meeting in June.

American Bitcoin shares (ABTC) fell to a record low of around $0.64 on Wednesday and are down more than 64% year-to-date, according to The Block's crypto equities price page.

Bad time for bitcoin

Reverse stock splits are also cropping up elsewhere in the bitcoin treasury sector. In May, David Bailey's Nakamoto announced a 1-for-40 reverse split after NAKA shares traded below Nasdaq's $1 minimum bid requirement for months, falling to an eventual low of $0.14.

American Bitcoin's split comes less than two months after reporting an $81.8 million first-quarter loss, driven mostly by unrealized losses on its bitcoin holdings.

Bitcoin (BTC) has seen 30% of its value shaved off year-to-date and has lost more than 50% since its $126,000 all-time high last October.

Despite the loss, the company mined a record 817 bitcoin during the first quarter and acquired another 803 BTC for its treasury, ending March with 7,021 BTC on its balance sheet. It has since increased that number to 7,500 BTC, according to BitcoinTreasuries, making American Bitcoin the 16th-largest publicly traded bitcoin holder.