Eric Trump’s American Bitcoin (ABTC) Stock Drops 23% After Reverse Split Raises Red Flags

TLDR

• American Bitcoin (ABTC) fell more than 23% Tuesday after a 1-for-15 reverse stock split took effect
• The stock has lost over 70% of its value in 2026, with a year-to-date drop of around 66.71%
• The reverse split reduced the float from 1.09 billion to approximately 73 million shares
• Bitcoin has roughly halved since its October peak above $126,000, recently trading near $63,761
• Eric Trump highlighted a 52% mining profit margin in Q1, despite the broader crypto market decline

American Bitcoin Corp (ABTC) dropped more than 23% on Tuesday, July 8, closing around $6.52, after its 1-for-15 reverse stock split began trading on an adjusted basis.

American Bitcoin Corp, ABTC

The stock started the week already under pressure. ABTC has shed more than 70% of its value in 2026, with a year-to-date decline of around 66.71%.

The reverse split had been announced last week and received shareholder approval before it was implemented. It reduced the number of outstanding shares from roughly 1.09 billion to approximately 73 million.

The move was made to satisfy Nasdaq minimum bid price requirements. Fractional shareholders are being paid out in cash as part of the restructuring, and the company updated its CUSIP identifier.

Reverse splits are often viewed negatively by investors. Even though they do not change the underlying value of a company, they signal that a stock had fallen too low to maintain its listing without intervention.

American Bitcoin holds more than 8,000 bitcoin on its balance sheet. The company is backed by Eric Trump and Donald Trump Jr., who are co-founders.

Bitcoin itself traded near $63,761 on Tuesday, down about 1.47%. The largest cryptocurrency has fallen roughly 50% from its all-time high of over $126,000 hit in October 2025.

Mining Margins Hold Up

Despite the stock slide, Eric Trump pointed to some operational strength. In a social media post Tuesday, he said the company mined bitcoin at a 52% profit margin in Q1 2026.

He also noted the company had continued adding to its bitcoin treasury and kept overhead costs low during the quarter.

The company’s gross margins from mining operations remain relatively healthy at the basic operating level. However, deep operating losses and ongoing cash burn mean it continues to rely on outside financing.

Pressure Across Crypto Treasury Firms

American Bitcoin is not alone in feeling the heat. Strategy Inc., which pioneered the corporate bitcoin treasury model, recently walked back its “never sell bitcoin” stance as the crypto downturn extends into its ninth month.

That shift from Strategy was seen as a telling sign of how difficult conditions have become across the sector.

ABTC’s current market cap sits at approximately $9.2 billion. Average daily trading volume runs around 1.07 million shares.

The stock’s technical sentiment signal is rated “Strong Sell.” The company has not issued new price targets or forward guidance alongside the reverse split announcement.

As of Tuesday’s close, ABTC was trading at $6.52, down $1.97 on the day.

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