American Bitcoin, the cryptocurrency company backed by the Trump family, hit a new low on Wednesday, with shares plunging 8.4% during intraday trading. The decline came as the company confirmed plans to execute a reverse stock split in an effort to prop up its share price and maintain its listing on the Nasdaq exchange.
A reverse stock split consolidates existing shares into fewer, higher-priced shares without altering the company's total market capitalization. It is typically used by firms whose stock price has fallen close to the $1 minimum required by Nasdaq. Analysts interpreted the announcement as a sign of weakening investor confidence and mounting liquidity pressure. As of press time, American Bitcoin had not disclosed the exact split ratio or implementation timeline.
The drop follows a broader downturn in crypto-related equities, as regulatory uncertainty and declining Bitcoin prices continue to weigh on the sector. American Bitcoin's stock has lost more than 40% of its value year-to-date, raising questions about the viability of its mining and trading operations.