American Bitcoin Under Pressure

American Bitcoin, a cryptocurrency company linked to the Trump family, has seen its stock price fall to a record low just ahead of a planned reverse stock split. The move is designed to help the company maintain its listing on the Nasdaq Stock Market.

The company's shares closed Wednesday's trading session at $0.62, down 8.4% on the day. It marked the lowest closing price in the company's history.

The 1-for-15 reverse stock split will take effect after Thursday's market close. Trading on a split-adjusted basis will begin on Monday, while the company will continue trading under the ticker symbol ABTC.

Under the reverse split, every 15 existing shares will be consolidated into one new share, increasing the share price by a factor of 15. The total value of shareholders' holdings will remain unchanged, with only the number of shares decreasing. As a result, the company's outstanding shares will be reduced from more than one billion to approximately 73 million.

The primary goal of the reverse split is to comply with Nasdaq's minimum share price requirement. A company risks being delisted if its closing share price remains below $1 for 30 consecutive trading sessions. Shareholders approved the proposal on June 22.

American Bitcoin is the only publicly traded cryptocurrency company associated with the family of Donald Trump. The business was founded early last year by Donald Trump Jr. and Eric Trump before going public through a merger with Gryphon Digital Mining. The Trump family and Hut 8 together control roughly 98% of the new company's shares.

American Bitcoin stock has fallen more than 63% since the beginning of the year. Since its Nasdaq debut on September 3, the share price has plunged by more than 92%. In May, the company reported a net loss of $81.7 million for the first quarter.

American Bitcoin is not the only crypto-related company turning to a reverse stock split. In May, Nakamoto completed a 1-for-40 reverse split in a similar effort to preserve its Nasdaq listing.

According to CoinGecko, Bitcoin was trading at around $60,000 early Thursday. The cryptocurrency is down 32% since the start of the year and is now worth less than half of its October peak, when it climbed above $126,000.