American Bitcoin Corp. announced. (NASDAQ: ABTC) is conducting a reverse stock split, which will be effective on July 2, 2026. The Trump-backed company effectively went into crisis management mode to avoid being delisted from the Nasdaq after its shares fell below the acceptance threshold.
The company joins a growing list of publicly traded bitcoin treasury companies that have had to take similar measures to remain on the exchange.
When did ABTC stock collapse?
US Bitcoin went public through a reverse merger with Gryphon Digital Mining and reached a post-IPO high of $14.65. However, this peak price is now just a blip in the rearview mirror as the unit price of each token has fallen by more than 95% since then.
News of the stock’s adjustment led to another nearly 8% drop on the day, with ABTC stock down It is currently trading in a range of $0.60 to $0.69.
The company reported a net loss of about $82 million during the first quarter of 2026, representing a 37% increase from the $59.4 million loss recorded in the fourth quarter of 2025. Its CEO, Mike Hu, stated that most of the damage came from non-cash charges from the market associated with Bitcoin’s quarterly price decline.
US Bitcoin currently has 7,500 BTC according to data from BitcoinTreasuries.net. The company added More than 1600 bitcoins to its treasury during the first quarter and increased the capacity of its mining fleet to approximately 90,000 rigs after it purchased 11,298 miners from ASIC to deploy at its Drumheller facility in Alberta, Canada.
Nasdaq requires that listed companies maintain a minimum offering price of $1.00 per share. Reverse stock split ABTC helps to remain compliant as it consolidates existing shares to artificially push the stock price above the threshold, without changing the fundamental value of the company.
Is this the pattern for Bitcoin treasuries?
US Bitcoin is not alone in the path of a reverse stock split, as two BTC treasury companies have also resorted to the same game to remain on the Nasdaq.
One of them is Nakamoto (NASDAQ: NAKA), the bitcoin treasury company led by David Bailey. The company executed a 1-for-40 reverse stock split in May after its shares collapsed to $0.15.
Nakamoto’s outstanding shares fell from about 696 million to about 17.4 million, resulting in a split-adjusted price near $6.32.
Company It received a delisting notice from Nasdaq in December 2025 after its stock fell below a specified threshold.
In January 2026, Nasdaq sent a notice of deficiency to K Wave Media for failing to maintain a minimum market capitalization of listed securities of $50 million.
Shares of the South Korean company, which centered on a digital asset treasury, have fallen to about $0.45 from 2025 highs, and it has been given 180 days to regain compliance.
Nasdaq has not granted Digitalcurrency
Does reverse splits solve the problem?
However, according to CoinShares investment analyst Satish Patel, most companies see negative returns in the six to 12 months after a fork because the companies implementing it are usually in financial distress. The analyst stated that it is sending the same signal to the market.
Citigroup executed a 1-for-10 reverse split in 2011 at about $4.50 and saw its shares fall to $3 within months. AIG’s 1-for-20 split in 2009 failed to halt its decline. RadioShack completed a 1-for-10 split in 2013 and filed for bankruptcy two years later.
Essentially, the company isn’t pulling the lever on a reverse stock split because it’s in a good place. It’s a kind of last resort that the markets interpret as such.
This split will preserve US Bitcoin’s access to public capital markets, which is extremely important for a company currently suffering a large quarterly loss. Its parent company, Hut 8, holds an 80% stake and has signaled that bitcoin is no longer a long-term focus of its own operations, with plans to gradually reduce its holdings of 13,696 bitcoin.
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