Trump-Backed Crypto Miner Plunges Amid Nasdaq Listing Fears

American Bitcoin (ABTC), the crypto miner backed by the Trump family, saw its shares sink to an all-time low on Wednesday, dropping nearly 8.4% to close at 62 cents. The company is set to undergo a 1-for-15 reverse stock split in a bid to stay listed on the Nasdaq.

The split will take effect after the market closes on Thursday and trading will begin under the adjusted share price when markets open on Monday. This means every 15 shares of Class A and B common stock will be reclassified as one share, reducing the total number of outstanding shares from over 1 billion to approximately 73 million.

The move is seen as a negative signal for the company's financial health, as reverse stock splits are typically used by companies facing distress or struggling to meet listing requirements. American Bitcoin aims to prop up its share price to comply with Nasdaq's minimum bid requirement of $1 per share, which would allow it to avoid delisting.

The Trump family-backed company has faced a wider downturn in the crypto market, with shares down over 63% so far this year and more than 92% since going public on September 3. Other crypto companies have also resorted to reverse stock splits to maintain their listing status, including Nakamoto, which completed a 1-for-40 split in May.