American Bitcoin sinks 8.4% ahead of reverse split
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- American Bitcoin stock tumbled 8.4% to an all-time closing low of 62 cents on Wednesday, ahead of a planned reverse stock split designed to keep the company listed on the Nasdaq.
- The Trump-linked miner is down more than 63% year-to-date and has shed over 92% since it began trading on the Nasdaq on September 3.
- Donald Trump Jr. and Eric Trump co-founded American Bitcoin, which went public by merging with Nasdaq-listed Gryphon Digital Mining; the Trump brothers and crypto miner Hut 8 together own roughly 98% of the combined company.
- American Bitcoin reported an $81.7 million net loss in the first quarter, disclosed in May, as the broader crypto downturn pressures its share price.
- Bitcoin (BTC) is trading around $60,000, down 32% year-to-date and more than halved from its October peak above $126,000, per CoinGecko.
- Crypto peer Nakamoto completed a 1-for-40 reverse split in May after its stock hit a 16-cent low in April, illustrating a common Nasdaq-listing survival tactic in the sector.
Why it matters: With American Bitcoin down 92% since its September Nasdaq debut and insiders controlling 98% of shares, the reverse split is a cosmetic fix for a company whose $81.7 million Q1 loss and exposure to Bitcoin's more-than-50% drawdown from its October peak leave it dependent on continued listing access to attract any outside capital.
