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American Bitcoin Corp is consolidating its stock at a ratio of 1-for-15, compressing roughly 1.092 billion outstanding shares down to approximately 73 million. The move, effective around July 2 to 6, is the company’s third reverse stock split in under two years.
What’s actually happening
Shareholders overwhelmingly backed the split at the company’s annual meeting on June 22, with 93.56% voting in favor. The restructured share count will break down to around 24 million Class A shares and 49 million Class B shares.
Here’s the thing: this isn’t happening because the company is thriving on the stock market. Shares were trading between $0.66 and $0.70 before the announcement, hovering uncomfortably close to Nasdaq’s $1 minimum bid price requirement. Fall below that threshold for too long and the exchange starts sending letters no CEO wants to receive.
A company with a complicated recent history
American Bitcoin Corp, trading under the ticker ABTC, wasn’t always called American Bitcoin. The company previously operated as Gryphon Digital Mining before a merger transformed it into its current incarnation in September 2025. That same month, it executed a 1-for-5 reverse stock split. Before that, in February 2024, there was a 1-for-20 reverse split.
The company is majority-owned by Hut 8 Corp and was co-founded by Eric Trump and Donald Trump Jr. Despite the stock’s struggles, American Bitcoin has been stacking sats at an impressive clip. The company reported holding more than 7,000 BTC, valued at approximately $471 million. That’s a substantial treasury for a company whose equity was trading near its 52-week low.
What this means for investors
The 93.56% shareholder approval rate suggests that investors who actually hold the stock view this as a necessary step rather than a red flag. When your alternative is potential Nasdaq delisting, consolidating shares starts to look like the pragmatic choice.
The play for American Bitcoin appears to be about repositioning for institutional interest. Many institutional investors and funds have internal policies that prevent them from buying stocks priced below $5 or even $10. A post-split price somewhere in the range of $10 (assuming the pre-split price holds around $0.70) would clear that hurdle and potentially open the stock to a wider pool of buyers.
The 7,000-plus BTC treasury is the bull case in a nutshell. At current Bitcoin prices, that stash represents significant value relative to the company’s market cap. Three reverse splits in under two and a half years is the kind of track record that makes value investors reach for the Pepto-Bismol. Each previous consolidation failed to sustainably lift the stock above compliance thresholds, and there’s no structural guarantee this one will be different.
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