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
