There’s a contradiction at the heart of American Bitcoin’s treasury strategy: its Bitcoin pile is growing while its share price moves in the opposite direction.
The Eric Trump-linked company recently announced that its holdings reached 8,000 BTC, up from more than 7,000 BTC at the end of the first quarter.
Separately, the company announced a 1-for-15 reverse stock split, which combines every 15 shares into one. It’s used to raise the price of each remaining share, but it doesn’t increase the company’s value or change the value of an investor’s position at the time of the split.
The split took effect after the market closed on July 2, and split-adjusted trading began on Nasdaq on July 6.
American Bitcoin now has 8,000 BTC on one side of the ledger and a valuation the market is no longer taking on faith. That valuation could hold if buyers continue to reward Bitcoin-per-share growth and mining economics despite the reverse split.
It will become harder to defend if the split is seen as ev
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