ABITS GROUP Inc Reports Unaudited Financial Results for the First Half of 2026

Higher direct costs and a digital-asset valuation loss accompanied the revenue decline, while operating cash use increased.

Rhea-AI Summary

Abits Group (NASDAQ: ABTS) reported unaudited first-half 2026 revenue of $3.20 million, down approximately 20% from a year earlier.

Direct costs rose 48% to $2.76 million. Net loss widened to $2,551,089 from $354,787, and loss per ordinary share increased to $0.79 from $0.15. Duff produced 25.63 bitcoin, down 23%; Memphis produced 15.58 bitcoin and generated $1.2 million in revenue.

Operating cash use increased to $843,130 from $570,443. Cash stood at $79,007 on June 30, against $2,304,417 in current liabilities. Bitcoin holdings reached 24.67 coins, up 54% from December 31, 2025.

On September 14, Abits signed an agreement to sell a $16,470,588.24 convertible promissory note for up to $14,000,000, payable in three tranches. Stephen Faucetta became chief executive officer, chairman and a director effective October 6, 2026.

10 points · 1 major

MixediHow this balance works

How this balance works

Rhea-AI gives every point it takes from this document a weight. Minor counts 1, Moderate 3 and Major 9, so one Major point outweighs several Minor ones. The bar adds up the weights on each side, and when neither side holds more than 65% of the total the balance reads Mixed.

It reads the document as published, with the same rules for every company, and it does not look at what the market expected or at how the stock traded, so a point can be objectively good on a day the stock falls.

Rhea-AI Sentiment measures something else, the tone of the wording.

How the balance worksHow Sentiment works

2 major · 13 points

Hollow bars mark forward-looking points. How the balance works

Positive

• Major point. Forward-looking: it has not happened yet and may not happen.September 14 financing agreement provides for up to $14,000,000 in purchase payments from one institutional investor. 3.7× market cap
• Moderate pointFirst-half 2026 financing activities brought in $1,645,786 before loan repayments. 43% of market cap
• Moderate pointMemphis generated $1.2 million revenue and produced 15.58 bitcoin in first-half 2026.
• Moderate pointGeneral and administrative expenses fell to $500,027 from $1,133,589 in first-half 2025.
• Moderate pointBitcoin holdings increased 54% to 24.67 coins at June 30, 2026, from December 31, 2025.
• Moderate pointFirst-half 2026 loan repayments totaled $625,000, compared with $375,000 a year earlier. 16% of market cap

4 minor points

• Minor pointThird-party customer hosting fees continued growing in first-half 2026.
• Minor pointDuff water expenses fell 26.36% to $105,222 from $142,879 following well upgrades.
• Minor pointProperty and equipment purchases fell to $307,675 from $3,028,603 in first-half 2025.
• Minor pointGain on disposal of miners and other net income reached $141,893, versus none in first-half 2025.

Negative

• Major pointFirst-half net loss widened to $2,551,089 from $354,787; loss per share rose to $0.79 from $0.15.
• Major point. Forward-looking: it has not happened yet and may not happen.September financing provides for a $16,470,588.24 convertible note, adding a debt obligation with potential share dilution. 4.3× market cap
• Moderate pointFirst-half 2026 revenue fell approximately 20% to $3.20 million from $4.0 million a year earlier.
• Moderate pointDirect costs rose 48% to $2.76 million, including $1.05 million in Memphis hosting fees and electricity charges.
• Moderate pointFirst-half operating cash use increased to $843,130 from $570,443 a year earlier.
• Moderate pointJune 30 current liabilities of $2,304,417 exceeded current assets of $894,417.
• Moderate pointOrdinary shares and pre-funded warrants issued in February financing dilute holders; first-half ordinary share issuance totaled 844,450.
• Moderate pointShareholders’ equity declined to $6,858,764 at June 30, 2026, from $7,780,771 at December 31, 2025.

5 minor points

• Minor pointDuff revenue fell 46% to $1.81 million; bitcoin output declined 23% to 25.63 coins year over year.
• Minor pointJune 30 cash fell to $79,007 from $83,837 at December 31, 2025.
• Minor pointDigital-asset fair-value changes produced a $419,009 loss, versus a $364,800 gain in first-half 2025.
• Minor pointDepreciation increased to $2,014,958 from $1,619,905 in first-half 2025.
• Minor pointInterest expense increased to $184,633 from $90,000 in first-half 2025.

News Explained

Abits completed an approximately $2.1 million financing on February 24, 2026 through ordinary shares and pre-funded warrants. By June 30, 2026, ordinary shares outstanding were 3,214,445 versus 2,369,995 on December 31, 2025, reducing existing holders’ percentage ownership as the share count increased, while pre-funded warrants convert into shares when exercised.

Key Figures

Revenue: $3.20 million, down approximately 20% from $4.0 million Duff site BTC output: 25.63 coins, down 23% from 33.33 coins Duff site recognized revenue: $1.81 million, down 46% from $3.37 million +5 more

Revenue

$3.20 million, down approximately 20% from $4.0 million

Six months ended June 30, 2026, compared with 2025

Duff site BTC output

25.63 coins, down 23% from 33.33 coins

First half of 2026 compared with first half of 2025

Duff site recognized revenue

$1.81 million, down 46% from $3.37 million

First half of 2026 compared with first half of 2025

Direct costs

$2.76 million, up 48% from $1.86 million

First half of 2026 compared with first half of 2025

Pre-tax loss

Approximately $2.54 million, compared with $0.34 million

First half of 2026 compared with first half of 2025

BTC holdings

24.67 BTC, up 54% from 15.99 BTC

As of June 30, 2026, compared with December 31, 2025

Convertible note principal

$16,470,588.24

September 14 securities purchase agreement

Aggregate purchase price

Up to $14,000,000

September 14 securities purchase agreement

Previous Earnings Reports

1 past event · Latest: Aug 13

Same Type 1 event

1. Aug 13

   H1 earnings

   24h Move

   +5.7%

   Prior H1 results showed 40.27 BTC output and a $0.34 million pre-tax loss.

24h Move is the share-price change in the day after each event; other market factors may also have contributed.

Key Terms

convertible promissory note, pre-funded warrants

2 terms

convertible promissory note financial

"issuance and sale of a convertible promissory note in an original principal amount"

A convertible promissory note is a loan a company takes now that can later be turned into shares instead of being repaid in cash. Think of it as lending money with the option to accept ownership in the business down the road; that matters to investors because it affects who gets paid first, how much ownership existing shareholders keep, and the company’s future valuation and cash needs. Terms such as conversion price, interest and maturity determine the financial impact.

pre-funded warrants financial

"through the issuance of ordinary shares and pre-funded warrants"

Pre-funded warrants are financial instruments that give investors the right to purchase a company's stock at a set price, but with most or all of the purchase price paid upfront. They function like a coupon or gift card for stock, allowing investors to buy shares later at a fixed price, which can be beneficial if they want to avoid future price increases. This makes them important for investors seeking flexibility and certainty in their investment plans.

AI-generated analysis. How Rhea-AI works. Not financial advice.

See more from StockTitan in Google Search and AI answers. Adds StockTitan as a preferred source · opens Google

Add on Google Not now

Hong Kong, Oct. 15, 2026 (GLOBE NEWSWIRE) -- Abits Group Inc (NASDAQ: ABTS) is pleased to announce its half-year results for the period ended June 30, 2026.

For the six-month period ended June 30, 2026, the Company generated revenue of $ 3.20 million, representing a decrease of approximately 20% compared with $ 4.0 million for the six-month period ended June 30, 2025.

The primary reasons are as follows:

●	At the Duff site, the output of BTC reached 25.63 coins in the first half of 2026, a 23% decline from 33.33 coins recorded in the first half of 2025. Meanwhile, the BTC market experienced a significant downturn in the first half of 2026, resulting in the Company’s recognized revenue dropping from $ 3.37 million to $ 1.81 million, a year-on-year decrease of 46%.
●	Notably, the Memphis site commenced operations at the end of March 2025. It produced 15.58 BTC and generated revenue of $ 1.2 million in the first half of 2026. In addition, hosting fees from third-party customers maintained steady growth.

Direct costs rose by 48% from $ 1.86 million in the first half of 2025 to $ 2.76 million in the first half of 2026.

●	This increase was mainly attributable to the full recognition of hosting fees (including all electricity charges) of $ 1.05 million for the Memphis project in 2026.
●	On a positive note, the two upgraded water wells at the Duff Mine have started to deliver benefits, with water expenses decreasing by 26.36% from $142,879 to $105,222.

The Company recorded a pre-tax loss of approximately $ 2.54 million for the first half of 2026, compared with a pre-tax loss of $0.34 million in the first half of 2025.

Given the depressed BTC market conditions, the Company proactively increased its holdings of self-mined BTC.

As of June 30, 2026, the Company held 24.67 BTC, an increase of 54% from 15.99 BTC as of December 31, 2025.

On February 24, 2026, the Company completed a financing of approximately $ 2.1 million through the issuance of ordinary shares and pre-funded warrants to fund its general operations.

For the second half of the year, the Company has been actively pursuing financing opportunities to adapt to changing market conditions:

●

On September 14, 2026, the company entered into a Securities Purchase Agreement with one institutional investor, providing for the issuance and sale of a convertible promissory note in an original principal amount of $16,470,588.24 for an aggregate purchase price of up to $14,000,000. The purchase price is payable in three tranches of $8,000,000, up to $2,500,000 and up to US$3,500,000.

●

On October 6, 2026, the Board appointed Stephen Faucetta as Chief Executive Officer, Chairman of the Board and a director, and appointed Glenn Josephs and Mohsen (Michael) Khorassani as independent directors, in each case effective as of October 6, 2026. The appointments of Mr. Josephs and Mr. Khorassani filled the vacancies created by the resignations of Khuat Leok Choong Lionel and Yanyan Sun, respectively.

The new management team believes it will be better positioned to serve the Company and execute its strategies.

ABITS GROUP INC
CONSOLIDATED BALANCE SHEETS

				As of				As of
		Note		June 30, 2026 (Unaudited)				December 31, 2025
ASSETS
Current Assets
Cash and cash equivalents				$	79,007			$	83,837
Receivable and Other receivables					814,410				816,847
Accounts prepaid					1,000				-
Total current assets					894,417				900,684
Digital assets		1			1,445,832				1,483,451
Property, equipment and vehicles		2			6,822,932				8,530,215
Total non-current assets					8,268,764				10,013,666
Total Assets					9,163,181				10,914,350
LIABILITIES AND SHAREHOLDERS’ EQUITY
Current liabilities
Payable, other payable and accruals				$	1,054,417			$	1,258,579
Short-term loan from unrelated third party		3			1,250,000				1,500,000
Total current liabilities					2,304,417				2,758,579
Non-Current liabilities
Long-term loan from unrelated third party					-				375,000
Total non-current liabilities					-				375,000
Total Liabilities					2,304,417				3,133,579
Stockholders’ Equity
Preferred stock, no par value, authorized: unlimited shares, 333,333 shares issued and outstanding as of June 30, 2026 and December,31 2025				$	5,050			$	5,050
Common stock, no par value, authorized: unlimited shares. Issued and outstanding: 3,214,445 shares as of June 30, 2026 and 2,369,995 shares as of December 31, 2025		6			35,554				35,554
Additional paid-in capital					91,202,699				89,556,913
Accumulated deficit					(84,223,968	)			(81,672,879	)
Accumulated other comprehensive income					(160,571	)			(143,867	)
Total Shareholders’ Equity					6,858,764				7,780,771
Total Liabilities and Shareholders’ Equity				$	9,163,181			$	10,914,350

ABITS GROUP INC
UNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

				Six Months Ended				Six Months Ended
		Note		June 30, 2026				June 30, 2025
Revenue		4		$	3,195,414			$	3,995,558
Direct costs of revenue		5			(2,759,655	)			(1,856,866	)
Profit from operations					435,759				2,138,692
General and administrative expenses					(500,027	)			(1,133,589	)
Depreciation					(2,014,958	)			(1,619,905	)
Gain on disposal of miners and other net income					141,893				-
Interest expense		3			(184,633	)			(90,000	)
Fair value changes of digital assets					(419,009	)			364,800
Loss before tax					(2,540,975	)			(340,002	)
Income taxes					(10,114	)			(14,785	)
Loss after tax					(2,551,089	)			(354,787	)
Foreign exchange adjustment					(16,704	)			260
Comprehensive loss for the period				$	(2,567,793	)		$	(354,527	)
Basic and diluted loss per ordinary share				$	(0.79	)		$	(0.15	)
Basic and diluted average number of ordinary shares outstanding					3,214,445				2,369,995

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, 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 first half of year			-				-				-				-				-				(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
Net loss for the Second half of year			-				-				-				-								(2,514,709	)			-				(2,514,709	)
Foreign exchange adjustment																											2,336				2,336
Compensation			-				-				-				-				266,720				-				-				266,720
Balance, December 31, 2025			333,333			$	5,050				2,369,995			$	35,554			$	89,556,913			$	(81,672,879	)		$	(143,867	)		$	7,780,771
Net loss for the first half of year			-				-				-				-				-				(2,551,089	)			-				(2,551,089	)
Share Issuance			-				-				844,450				-				1,645,786				-								1,645,786
Foreign exchange adjustment			-				-				-				-				-				-				(16,704	)			(16,704	)
Balance, June 30, 2026			333,333			$	5,050				3,214,445			$	35,554			$	91,202,699			$	(84,223,968	)		$	(160,571	)		$	6,858,764

ABITS GROUP INC.
UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

		For the Six Months Ended				For the Six Months Ended
		June 30, 2026				June 30, 2025
Net loss for the period		$	(2,551,089	)		$	(354,787	)
Adjustments to reconcile to cash used in operating activities:
Depreciation of property, and equipment			2,014,958				1,619,905
Fair value changes on digital assets			419,009				-
Non-operating income from insurance claims and disposal of vehicles			(141,893	)			-
Changes in operating assets and liabilities:
Other receivables and prepayments			2,437				15,916
Other payable and accruals			(204,162	)			(145,140	)
Account prepaid and other deposits			(1,000	)			-
Digital assets			(381,390	)			(1,706,337	)
Net cash (used in) operating activities			(843,130	)			(570,443	)
Cash flows from investing activities
Purchase of property and equipment			(307,675	)			(3,028,603	)
Proceeds from insurance claims and disposal of vehicles			141,893				-
Net cash (used in) investing activities			(165,782	)			(3,028,603	)
Cash flows from financing activities
Cash from financing activities:			1,645,786				3,000,000
Repayment of loans from unrelated third parties			(625,000	)			(375,000	)
Net cash generated from financing activities			1,020,786				2,625,000
Net cash inflow/(outflow) for the period			11,874				(974,046	)
Effect of exchange rates on cash and cash equivalents			(16,704	)			260
Net decrease in cash and cash equivalents			(4,830	)			(973,786	)
Cash and cash equivalents, beginning of year			83,837				1,118,929
Cash and cash equivalents, end of the period		$	79,007			$	145,143

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.

INVESTOR RELATIONS CONTACT
Abits Group Inc
Email: ir@abitgrp.com
Website: www.abitsgroup.com
Nasdaq: ABTS

FAQ

AI-generated questions and answers. How Rhea-AI works. Not financial advice.

What were Abits Group's first-half 2026 earnings results?

Abits reported revenue of $3.20 million and a net loss of $2,551,089 for the six months ended June 30, 2026. Revenue decreased approximately 20% from a year earlier. Basic and diluted loss per ordinary share was $0.79, compared with $0.15 in first-half 2025.

How much funding does Abits Group's September 2026 convertible-note agreement provide?

The September 14, 2026 agreement provides for a convertible promissory note with original principal of $16,470,588.24, sold to one institutional investor for an aggregate purchase price of up to $14,000,000.

How are payments structured under Abits Group's convertible-note financing?

The purchase price is payable in three tranches: $8,000,000, up to $2,500,000 and up to US$3,500,000. These are the payment amounts specified in the September 14, 2026 securities purchase agreement.