Abits Group Inc Reports Amended Unaudited Financial Statements for the First Half of 2025

Rhea-AI Summary

Abits Group (NASDAQ:ABTS) has announced amendments to its unaudited financial statements for H1 2025, primarily correcting share counts following a March 2025 reverse split. The company reported H1 2025 revenue of $3.99 million, up from $3.67 million in H1 2024, driven by bitcoin mining operations and hosting services.

Key financial metrics include: net loss of $354,787 compared to $13,964 in H1 2024, mining output of 40.27 bitcoins (down from 61.53 in H1 2024), and total assets of $13.49 million. The company secured a $3 million loan in March 2025 at 12% annual interest, repayable in 24 installments.

[ "Revenue increased to $3.99M in H1 2025, up 8.9% from H1 2024", "New hosting services revenue stream generated $135,889", "Property, equipment and vehicles value increased to $10.84M from $9.43M", "Digital assets holdings increased to $1.96M from $257,753" ]

Positive

• None.

Negative

• Net loss increased significantly to $354,787 from $13,964 year-over-year
• Bitcoin mining output decreased to 40.27 coins from 61.53 coins in H1 2024
• Cash position declined to $145,143 from $1.11M at year-end 2024
• Took on $3M loan with 12% interest rate, increasing debt obligations
• Operating cash flow turned negative at -$570,443 compared to +$1.22M in H1 2024

Insights

Financial Analyst

Abits Group's share count correction in financial statements doesn't change its $354,787 loss, while Bitcoin mining remains core business amid concerning cash decline.

Abits Group has made technical corrections to its financial statements regarding share counts following a 1-for-15 reverse split, with no changes to the company's financial performance metrics. The Bitcoin mining operation reported a $354,787 loss for H1 2025, compared to just $13,964 in the same period of 2024 - a significant 2,441% deterioration.

The financials reveal concerning liquidity trends, with cash reserves plummeting from $1.1 million to just $145,143 during the six-month period - a 87% decrease that raises sustainability questions. This cash burn occurred despite the company securing a $3 million loan in March 2025, bearing a 12% interest rate and requiring 24 equal installments backed by the Tennessee mining site assets.

Bitcoin mining remains the core revenue generator, with 40.27 bitcoins mined in H1 2025 compared to 61.53 in H1 2024 - a 34.5% decrease in production volume despite revenue increasing 8.9% to $3.99 million. This suggests higher Bitcoin prices offset declining production efficiency. The company began diversifying with hosting services, generating $135,889 in new revenue.

Digital asset holdings increased dramatically from $257,753 to $1.96 million, indicating a strategic shift toward holding rather than immediately selling mined Bitcoin. Meanwhile, property and equipment value grew 15% to $10.84 million, reflecting continued investment in mining capacity despite operational losses and diminishing cash reserves.

Hong Kong, Sept. 02, 2025 (GLOBE NEWSWIRE) -- Abits Group Inc (NASDAQ: ABTS) today announced it has recently made certain corrections to its unaudited financial statements for the six months ended June 30, 2025 that were announced on August 13, 2025.

The items that were corrected were the number of the Company’s authorized shares and the number of issued and outstanding shares as of June 30, 2025. A note describing these changes as a result of the reverse split that was effected on March 10, 2025 is included as Note 5 to the amended financial statements. All other financial figures, including the loss for the period of six months to June 30, 2025 and the loss per share remain unchanged.

The amended unaudited financial statements for the six months ended June 30, 2025 are attached to this press release.

ABITS GROUP INC
CONSOLIDATED BALANCE SHEETS

				As of				As of
		Note		June 30, 2025 (Unaudited)				December 31, 2024
ASSETS
Current Assets
Cash and cash equivalents				$	145,143			$	1,118,929
Receivable and other receivables					492,791				398,707
Accounts prepaid					50,000				160,000
Total current assets					687,934				1,677,636
Digital assets		1			1,964,090				257,753
Property, equipment and vehicles		2			10,844,606				9,435,908
TOTAL ASSETS					13,496,630				11,371,297
LIABILITIES AND SHAREHOLDERS’ EQUITY
Liabilities
Other payables and accruals				$	845,206			$	990,346
Loan		3			2,625,000				-
Total Liabilities					3,470,206				990,346
Shareholders’ Equity
Preferred shares, no par value, unlimited shares authorized, 333,333 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively*		5		$	5,050			$	5,050
Common shares, no par value, unlimited shares authorized, 2,369,995 and 2,370,139 shares issued and outstanding as of June 30, 2025 and December 31, 2024, respectively*		5			35,554				35,554
Additional paid-in capital					89,290,193				89,290,193
Accumulated deficit					(79,158,170	)			(78,803,383	)
Accumulated other comprehensive income					(146,203	)			(146,463	)
Total Shareholders’ Equity					10,026,424				10,380,951
Total Liabilities and Shareholders’ Equity				$	13,496,630			$	11,371,297

*	Retrospectively restated for the one-for-fifteen share consolidation effected on March 10, 2025.

ABITS GROUP INC
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

						Six Months Ended				Six Months Ended
		Note				June 30, 2025				June 30, 2024
Revenue			4			$	3,995,558			$	3,669,627
Direct costs of revenue							(1,856,866	)			(1,647,732	)
Profit from operations							2,138,692				2,021,895
General and administrative expenses							(1,133,589	)			(1,119,138	)
Depreciation							(1,619,905	)			(1,274,029	)
Fair value changes of digital assets							364,800				357,308
Loss before interest and taxes							(250,002	)			(13,964	)
Interest expense			3				(90,000	)			-
Loss before tax							(340,002	)			(13,964	)
Income taxes							(14,785	)			-
Loss after tax							(354,787	)			(13,964	)
Foreign exchange adjustment							260				(17,382	)
Comprehensive loss for the period						$	(354,527	)		$	(31,346	)
Basic and diluted loss per ordinary share			5			$	(0.15	)		$	(0.013	)
Basic and diluted average number of ordinary shares outstanding*			5				2,369,995				2,369,995

*	Retrospectively restated for the one-for-fifteen share consolidation effected on March 10, 2025.

ABITS GROUP INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES TO STOCKHOLDERS’ EQUITY

																										Accumulated
		Preferred Shares*								Ordinary Shares*								Additional paid-in				Accumulated				other comprehensive
		Number				Amount				Number				Amount				capital				deficit				income				Total
Balance, December 31, 2023			333,333				5,050				2,370,139				35,554				89,290,193				(77,893,723	)			(124,414	)			11,312,660
Net loss for the year			-				-				-				-				-				(909,660	)			-				(909,660	)
Foreign exchange adjustment			-				-				-				-				-				-				(22,049	)			(22,049	)
Fractional share redemption											(144	)
Balance, December 31, 2024			333,333				5,050				2,369,995				35,554				89,290,193				(78,803,383	)			(146,463	)			10,380,951
Net loss for the period			-				-				-				-				-				(354,787	)			-				(354,787	)
Foreign exchange adjustment			-				-				-				-				-				-				260				260
Balance, June 30, 2025			333,333				5,050				2,369,995				35,554				89,290,193				(79,158,170	)			(146,203	)			10,026,424

*	Retrospectively restated for the one-for-fifteen share consolidation effected on March 10, 2025.

ABITS GROUP INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

		For the Six Months Ended				For the Six Months Ended
		June 30, 2025				June 30, 2024
Net loss for the period		$	(354,787	)		$	(13,964	)
Adjustment to reconcile cash used in operating activities:
Depreciation of property, equipment and vehicles			1,619,905				1,274,028
Changes in operating assets and liabilities:
Receivables, other receivables and prepaid			15,916				403,544
Other payable and accruals			(145,140	)			(84,909	)
Digital assets			(1,706,337	)			(352,026	)
Net cash (used in)/generated from operating activities			(570,443	)			1,226,673
Cash from Investing activities:
Purchase of property, equipment and vehicles			(3,028,603	)			(1,696,907	)
Net cash used in investing activities:			(3,028,603	)			(1,696,907	)
Cash from financing activities:
Loan from a third party			3,000,000				-
Repayments of loan			(375,000	)			-
Net cash generated from financing activities			2,625,000				-
Effect of exchange rates on cash and cash equivalents			260				(17,382	)
Net decrease in cash and cash equivalents			(973,786	)			(487,616	)
Cash and cash equivalents, beginning of period			1,118,929				884,199
Cash and cash equivalents, end of period		$	145,143			$	396,583

See accompanying notes to consolidated financial statements

ABITS GROUP INC
NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

1. Digital assets

		June 30, 2025								December 31, 2024
BTC		Number				Value				Number				Value
Stock of bitcoins at the beginning of the year			2.58				246,136				16.41				693,389
Mined during the year			40.27				3,859,668				100.55				6,570,519
Exchanged for USD			(23.54	)			(2,180,105	)			(97.59	)			(6,360,675	)
Exchanged for USDT			(3.61	)			(326,409	)			(16.79	)			(1,180,595	)
Change in fair value of Bitcoin			-				364,800				-				523,498
Stock of bitcoins at the end of the year			15.70			$	1,964,090				2.58			$	246,136
USDC (one unit = one dollar)
Balance brought forward:			-				-				-				320,458
Exchange for USD			-				-				-				(45,168	)
Exchange for USDT			-				-				-				(5,437	)
Procurement of equipment and expenses			-				-				-				(269,853	)
Balance carried forward:			-				-				-				-
USDT (one unit = one dollar)
Balance brought forward:			-				11,617				-				180,310
Proceeds from exchange of USD and USDC			-				2,381,843				-				421,254
Proceeds from exchange of bitcoins			-				326,409				-				1,180,595
Procurement of equipment and expenses			-				(2,719,869	)			-				(1,770,542	)
Proceeds from sale of used equipment			-				-				-				-
Balance carried forward:			-				-				-				11,617
			-			$	1,964,090				-			$	257,753

2. Property, equipment and vehicles

Cost:		Land				Plant					Equipment				Vehicles				Total
Balance, January 1, 2025		$	1,896,291			$		2,384,687			$	8,127,643			$	133,308			$	12,541,929
Additions			-					128,390				2,900,215				-				3,028,605
Balance, June 30, 2025		$	1,896,291				$	2,513,077			$	11,027,858			$	133,308			$	15,570,534
Depreciation:
Balance, January 1, 2025						$		526,079			$	2,458,739			$	121,205			$	3,106,023
Charge for the period								243,477				1,364,325				12,103				1,619,905
Balance, June 30, 2025			-			$		769,556			$	3,823,064			$	133,308			$	4,725,928
Net book value:
Balance, January 1, 2025		$	1,896,291			$		1,858,609			$	5,668,904			$	12,103			$	9,435,907
Balance, June 30, 2025		$	1,896,291			$		1,743,521			$	7,204,794				-			$	10,844,606

3. Loan and interest expense

In March 2025, the Company took a loan of $ 3.0 million, with interest at a simple rate of 12% per annum. The loan is repayable in 24 equal instalments and is secured on all the assets of the Company’s mining site at Duff, Tennessee. The interest expense for the period to June 30, 2025 is $90,000 (2024: Nil.

4. Revenue

		2025-1H				2024-1H
Bitcoin Operations (1)			3,859,669				3,669,236
Hosting income from third parties (2)			135,889				-
			3,995,558				3,669,236

⁽¹⁾ The output of bitcoins during the first half year of 2025 is 40.27 coins (2024-1H:61.53 coins).
⁽²⁾ The Company began providing hosting services to third parties and charging a service fee from July 1, 2024.

5. Shareholders’ Equity

Preferred Shares

On February 13, 2025, the board of directors (the “Board of Directors”) of the Company approved to change the maximum number of preferred shares the Company was authorized to issue from 50,000,000 preferred shares, par value $0.00101 each, to an unlimited number of preferred shares, no par value each, and to amend and restate the Company’s Memorandum and Articles of Association, as amended, to reflect the changes.

On February 13, 2025, the Board of Directors approved a share consolidation of the Company’s preferred shares at the ratio of one-for-fifteen with an effective date of February 17, 2025.

Ordinary Shares

On February 13, 2025, the Board of Directors approved to change the maximum number of ordinary shares the Company was authorized to issue from 150,000,000 ordinary shares, par value US$0.001 each, to an unlimited number of ordinary shares of no par value each, and to amend and restate the Company’s Memorandum and Articles of Association, as amended, to reflect the changes.

On February 13, 2025, the Board of Directors approved a share consolidation of the Company’s ordinary shares at the ratio of one-for-fifteen with an effective date of February 17, 2025. On March 18, 2025, the Company paid cash to certain minor shareholders and cancelled 144 ordinary shares due to share consolidation reconciliation.

All historical share and per share amounts in these financial statements have been retroactively adjusted to reflect the share consolidations.

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. All statements other than statements of historical fact in this announcement are forward-looking statements. These forward-looking statements involve known and unknown risks and uncertainties and are based on current expectations and projections about future events and financial trends that the Company believes may affect its financial condition, results of operations, business strategy, and financial needs. Investors can identify these forward-looking statements by words or phrases such as “may,” “will,” “expect,” “anticipate,” “aim,” “estimate,” “intend,” “plan,” “believe,” “potential,” “continue,” “is/are likely to” or other similar expressions. The Company undertakes no obligation to update forward-looking statements to reflect subsequent occurring events or circumstances or changes in its expectations, except as may be required by law. Although the Company believes that the expectations expressed in these forward-looking statements are reasonable, it cannot assure you that such expectations will turn out to be correct, and the Company cautions investors that actual results may differ materially from the anticipated results.

For further information, please contact
ir@abitsgroup.com

FAQ

What were Abits Group's (ABTS) key financial results for H1 2025?

Abits Group reported revenue of $3.99M (up 8.9% YoY), net loss of $354,787, and mined 40.27 bitcoins. The company held total assets of $13.49M as of June 30, 2025.

How many bitcoins did ABTS mine in H1 2025 compared to H1 2024?

ABTS mined 40.27 bitcoins in H1 2025, down from 61.53 bitcoins in H1 2024, representing a 34.5% decrease in mining output.

What was the purpose of ABTS's March 2025 loan and its terms?

ABTS secured a $3M loan in March 2025 with a 12% annual interest rate, repayable in 24 equal installments. The loan is secured by the company's mining site assets in Duff, Tennessee.

How did ABTS's cash position change in H1 2025?

ABTS's cash position declined to $145,143 as of June 30, 2025, from $1.11M at December 31, 2024, primarily due to negative operating cash flow and equipment investments.

What changes were made to ABTS's share structure in early 2025?

ABTS implemented a 1-for-15 share consolidation for both preferred and ordinary shares in February 2025, and changed to unlimited authorized shares with no par value.