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

Rhea-AI Summary

Abits Group Inc (NASDAQ: ABTS) reported its H1 2025 financial results, showing mixed performance. The company achieved mining operations profit of $2.138 million, up 6% year-over-year, despite bitcoin mining rewards halving. Total bitcoin output decreased to 40.27 BTC (vs 61.53 BTC in H1 2024), but was offset by higher average bitcoin prices of $95,843 (vs $59,628 in 2024).

The company reported a net loss of $0.34 million before tax, compared to a $0.14 million loss in H1 2024, primarily due to increased depreciation charges and $90,000 in interest expenses from Memphis facility financing. The Duff, Tennessee site operates at 12mW with 500 pH/s output, while the new Memphis hosting facility, launched in April 2025, contributes 300 pH/s with 2,600 S19XPs installed.

The company maintains a sub-$0.04 kWH electricity cost and held digital assets valued at $1.96 million as of June 30, 2025.

Positive

• Mining operations profit increased 6% YoY to $2.138 million
• Average bitcoin price increased significantly to $95,843 (from $59,628)
• Water well installation reduced costs by $25,000 monthly
• New Memphis hosting facility adding 300 pH/s additional output
• Maintained competitive electricity costs below $0.04 kWH

Negative

• Bitcoin output decreased 34.5% to 40.27 BTC due to halving
• Net loss before tax increased to $0.34 million (from $0.14 million)
• New $3 million loan adding interest expenses of $90,000
• Cash and equivalents declined to $145,143 from $1.12 million
• Higher electricity bills due to natural gas rate increase

Insights

Financial Analyst

Abits Group improved mining revenues despite Bitcoin halving, but higher depreciation and interest expenses widened operating losses.

Abits Group's H1 2025 results present a mixed financial picture for this Bitcoin mining operation. Despite the Bitcoin halving event in April 2024 that reduced mining rewards, the company achieved a $2.14 million operating profit from mining, representing a 6% year-over-year improvement. This was accomplished through two offsetting factors: higher Bitcoin prices (averaging $95,843 versus $59,628 in 2024) and new revenue contributions from their Memphis hosting facility.

However, beneath the surface, several concerning trends emerge. The company's operating loss before interest and taxes widened to $250,000 from $140,000 in the comparable period, primarily due to higher depreciation charges from additional mining equipment. The bottom line deteriorated further with a $340,000 pre-tax loss (versus $140,000 in 2024) after accounting for $90,000 in interest expenses from a loan taken to finance the Memphis investment.

The company's cash position has dramatically weakened, falling to just $145,143 from $1.12 million at the end of 2024. This 87% reduction in cash reserves signals potential liquidity concerns, especially considering the substantial capital expenditures of $3.03 million on equipment during the period. The company has been selling Bitcoin to meet working capital requirements, converting 27.15 bitcoins to cash during H1 2025.

The $3 million loan taken in March 2025 to finance the Memphis facility represents a significant new financial obligation, with $375,000 already repaid. While this expansion could generate additional revenue, it also increases financial leverage and fixed costs during a period of operational challenges.

From an operational standpoint, the company has made some efficiency improvements, particularly with the installation of water wells at its Duff facility, reducing water expenses by approximately $25,000 monthly. However, electricity costs have increased due to natural gas price hikes, though the company maintains costs below $0.04 per kWh.

The Memphis hosting joint venture, which began operations in April 2025, represents a significant expansion with 2,600 S19XP miners now installed. Management expects this facility to boost performance in the second half of 2025, though this is heavily dependent on Bitcoin price stability or appreciation.

Hong Kong, Aug. 13, 2025 (GLOBE NEWSWIRE) -- Abits Group Inc (NASDAQ: ABTS) is pleased to announce its half-year results for the period ended June 30, 2025.

The operating profit from mining operations for the six months to June 30, 2025 was $2.138 million, an improvement of nearly 6% from the corresponding period last year. This was despite the halving of the mining rewards from late April 2024 which reduced total output to 40.27 bitcoins in the first half of 2025 (61.53 bitcoins in the same period of 2024).

An improvement in the average price of bitcoins of $95,843 (2024: $59,628) and a maiden contribution from the Memphis hosting facility in the last quarter helped to compensate for the shortfall. The loss before interest and taxation was $0.25 million (2024:$0.14 million) due to a higher depreciation charge for the additional machines. After accounting further for an interest expense of $90,000 because of the loan taken to finance the Memphis investment, the operating result before taxation was a loss of $0.34 million (2024: $0.14 million).

The Company’s main mining site at Duff, Tennessee is now operating at an optimum. The load is 12mW and the output approximately 500 pH/s. In the first quarter of 2025, we successfully installed and operated two water wells, effectively reducing the water bill by as much as $25,000 per month. The electricity bills are higher for this six months than the same period last year because of a hike in the natural gas rate but the average cost per kWH is still maintained at well below $0.04 kWH.

For the Company’s second site in Memphis which is operating under a hosting joint-venture with the local utility board, about 2600 S19XPs have been installed since April 2025. The output is approximately 300 pH/s.

The Company has been exchanging its bitcoin for cash to meet its working capital requirement since the second half of 2023 and in this first half of 2025, it sold 27.15 bitcoins with its holdings as stock at $1.96 million on June 30, 2025. In March 2025, the Company took an external loan of $3.0 million to finance the equipment for hosting facility in Memphis.

The Company expects the second half of 2025 to boost an improvement for the full year as the hosting facility in Memphis kicks into full gear, barring sharp declines in bitcoin prices.

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

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
Stockholders’ Equity
Preferred stock, $0.01515 par value, authorized; 3,333,333 shares, 333,333 shares issued and outstanding as of June 30, 2025 and December,31 2024				$	5,050			$	5,050
Common stock, $0.015 par value, authorized: 10,000,000 shares. Issued and outstanding: 2,370,139 shares as of June 30, 2025 and December,31, 2024					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

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						$	(0.15	)		$	(0.013	)
Basic and diluted average number of ordinary shares outstanding							2,370,139				2,370,139

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

		Preferred Shares								Ordinary Shares								Additional paid-in				Accumulated				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	)
Balance, December 31, 2024			333,333				5,050				2,370,139				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				2,370,139				35,554				89,290,193				(79,158,170	)			(146,203	)			10,026,424

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

FAQ

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

Abits Group reported mining operations profit of $2.138 million (up 6% YoY) but had a net loss before tax of $0.34 million. The company mined 40.27 bitcoins at an average price of $95,843.

How did the Bitcoin halving affect Abits Group's (ABTS) mining operations in 2025?

The Bitcoin halving in April 2024 reduced Abits Group's total bitcoin output by 34.5% to 40.27 BTC in H1 2025 compared to 61.53 BTC in H1 2024, though higher bitcoin prices helped offset the impact.

What is the current operational capacity of Abits Group's mining facilities?

Abits Group's Duff, Tennessee site operates at 12mW with 500 pH/s output, while the new Memphis facility contributes 300 pH/s with 2,600 S19XPs installed.

How much debt did Abits Group (ABTS) take on for the Memphis facility?

Abits Group took an external loan of $3.0 million in March 2025 to finance the equipment for the Memphis hosting facility, resulting in interest expenses of $90,000.

What is Abits Group's current bitcoin holdings and cash position?

As of June 30, 2025, Abits Group held digital assets valued at $1.96 million and cash equivalents of $145,143. The company sold 27.15 bitcoins during H1 2025 for working capital.