American Bitcoin Corp (NASDAQ:ABTC) approved a 1-for-15 reverse stock split Wednesday, a day after senators demanded hearings into the Trump family’s other crypto venture, World Liberty Financial (CRYPTO: WLFI).

Shareholders Approved Three Moves At The Annual Meeting

The board authorized the reverse split following shareholder approval, with the change set to take effect as soon as practicable. 

The move reduces outstanding shares while leaving authorized shares unchanged, a standard tactic companies use to boost per-share price without altering total shareholder value.

Shareholders also elected Asher Genoot to the board as a Class I director for a term running through 2029 and reappointed KPMG LLP as the company’s independent auditor.

Separately, directors Justin Mateen, Richard Busch, and Michael Broukhim converted their restricted stock units into ABTC shares on a 1-for-1 basis.

Despite the corporate actions, ABTC shares kept falling, down about 17% over the past week and roughly 60% year-to-date. 

American Bitcoin, backed by Eric Trump and Donald Trump Jr., holds more than 7,500 Bitcoin (CRYPTO: BTC) and ranks 16th among publicly traded corporate Bitcoin holders.

Senators Are Already Investigating The Trump Family’s Other Crypto Bet

The timing puts American Bitcoin’s news directly behind Tuesday’s Senate Democrat letter demanding hearings into World Liberty Financial. 

Five senators, including Elizabeth Warren (D-Mass.) and Richard Blumenthal (D-CT), want testimony on a $500 million deal in which associates of Abu Dhabi royal Sheikh Tahnoon bin Zayed Al Nahyan acquired a 49% stake in WLFI just before Trump’s inauguration.

That investigation has already widened to include a $1.4 billion arms sale to the UAE, a fast-tracked CFIUS review process, and a billion-dollar Nvidia chip deal for Emirati AI firm G42, which intelligence officials later linked to China’s missile programs. 

The same UAE ties are now the central obstacle blocking the CLARITY Act, after a Senate Banking Committee ethics amendment failed on procedural grounds.

ABTC Sits Deep In Oversold Territory With No Confirmed Bottom Yet

ABTC trades roughly 20% below its 20-day moving average and 73% below its 200-day average, with the stock locked in a clear downtrend across every major timeframe. 

RSI sits at 27.66, putting the stock firmly in oversold territory.

Key resistance sits at 88 cents, aligning with the 20-day moving average as the first test for any rebound. Support sits at 73 cents, the 52-week low zone where buyers have recently shown up to slow the decline.

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