American Bitcoin Reduces its Capital by 93%: The Reasons for a Reverse Split Destined to Preserve its Nasdaq Listing

The crypto mining company American Bitcoin Corp. (ABTC) has just triggered a radical financial restructuring. It has in fact announced the reduction of 93% of its outstanding shares through a 1-for-15 reverse split. The goal: artificially increase its stock price. This will prevent it from being delisted from the Nasdaq.

The split became effective at 5pm on July 2, 2026

The split was approved by American Bitcoin shareholders at the June 22 general meeting, before the board of directors set the final ratio. Shares will begin trading on an adjusted basis from Monday, July 6, 2026 under the same ticker ABTC, but with a new CUSIP number.

Specifically, each block of 15 Class A and Class B shares will automatically be reclassified into a single share of the corresponding class. Thus, the total number of outstanding shares decreases from about 1.09 billion (including 360 million Class A shares and 732 million Class B shares) to nearly 73 million. This represents about 24 million Class A shares and 49 million Class B shares. This equates to a contraction of nearly 93%.

Why is the crypto mining company American Bitcoin forced to perform a reverse split?

The main objective is to raise the price per share. Thus, the crypto mining company will continue to meet the minimum Nasdaq Capital Market listing threshold. The rule is strict: a share must maintain a floor price to remain listed.

According to some crypto analysts, the timing is no coincidence. On the eve of the operation, ABTC’s stock hit a new all-time low. It had fallen more than 41% over the month. Even worse! The drop reached nearly 86% over one year, in a context of a widespread crypto market downturn.

Note: a reverse split does not change the company’s real value. It mechanically redistributes the same capital over fewer shares, without creating value. It’s a common tool, but sometimes perceived by investors as a sign of weakness rather than strength.

The crypto market’s reaction was immediate

For shareholders, this split results in no direct dilution of their shares. However, it deeply alters the structure of their portfolio. No action is required since fractional shares will be bought back in cash.

Operationally, American Bitcoin’s management is reassuring. It states in its press release that this maneuver does not impact its crypto mining capabilities nor its digital asset reserves. Nevertheless, pressure remains high. Historically supported by major players like Hut 8, the firm must prove that this market reprieve will come with genuine profitability.

In any case, American Bitcoin secures vital regulatory breathing room by choosing the split route. While the operation temporarily secures its place on the Nasdaq, the company must now convert this opportunity into operational efficiency to regain lasting crypto investor confidence.