American Bitcoin drops before reverse stock split

• American Bitcoin shares fell 8.4% to a record low before a planned 1-for-15 reverse stock split aimed at maintaining its Nasdaq listing.
• The company said the share consolidation is intended to meet Nasdaq's minimum bid price requirement after the stock traded below US$1.
• American Bitcoin's shares have fallen more than 63% this year as the cryptocurrency miner continues to face market and financial pressures.

American Bitcoin shares fell 8.4% to a record low of US$0.62 after the company confirmed a 1-for-15 reverse stock split designed to maintain compliance with Nasdaq's minimum listing requirements.

The reverse stock split will take effect after Thursday's market close and begin trading on a split-adjusted basis on Monday, reducing the company's outstanding Class A and Class B shares from more than one billion to about 73 million.

American Bitcoin said the reverse stock split is intended to maintain compliance with Nasdaq's minimum bid price requirement after shareholders approved the proposal on June 22.

The company, co-founded by Donald Trump Jr. and Eric Trump, merged with Gryphon Digital Mining to become publicly listed, with the Trump family and Hut 8 collectively owning about 98% of the combined business.

American Bitcoin shares have fallen more than 63% this year and more than 92% since the company began trading on Nasdaq in September, while reporting a first-quarter loss of US$81.7 million in May.

Other cryptocurrency companies have also used reverse stock splits to maintain exchange listings, including Nakamoto, which completed a 1-for-40 share consolidation earlier this year after its stock price fell below Nasdaq's minimum threshold.

The announcement comes as cryptocurrency mining companies continue facing weaker digital asset prices and higher operating costs, increasing pressure on profitability and public market valuations.

At the time of reporting, Bitcoin price was $60,378.97.