Trump family mining company ABTC's stock price falls 95% from its peak, with over 8,000 BTC holdings posing potential selling risk

Following a 1:15 reverse stock split to maintain its Nasdaq listing, American Bitcoin, the Trump family's Bitcoin mining company, has seen its stock price drop 95% from its all-time high. Over the past 10 months, the book value of the approximately 6% stake held by Donald Trump's second son, Eric Trump, has shrunk by over $600 million. Data shows ABTC reported an operating loss of $118.2 million in the first quarter, with the vast majority attributed to Bitcoin impairment losses. The company recently added approximately 500 BTC, bringing its balance sheet Bitcoin holdings to over 8,000. If its financial situation worsens further and it cannot sustain external financing, there may be a potential risk of forced selling. The reverse stock split signals that the company faces the risk of delisting, which could further exacerbate stock selling and force the company to sell part of its Bitcoin assets to meet debt obligations.