Abits Group Inc Secures Loan for Memphis Expansion, Doubling Mining Capacity by Early April 2025

Rhea-AI Summary

Abits Group Inc (NASDAQ: ABTS) has secured a $3.0 million loan to expand its bitcoin mining operations in Memphis, Tennessee. The loan, carrying a 12% annual interest rate, will fund the purchase of new Antminer S19XP machines and is secured by assets in Duff, Tennessee.

The expansion project will double the company's mining capacity by increasing power capacity from 10MW to 22MW, with deployment expected by early April 2025. The Memphis hosting facility is scheduled to begin operations in Q2 2025.

The company has also successfully renegotiated its Hosting Agreement with a service provider for improved terms. The Memphis expansion is projected to generate additional EBITDA earnings over the next three years.

Positive

• Secured $3.0M loan for expansion and new mining equipment
• Power capacity increasing from 10MW to 22MW, doubling mining capacity
• Successfully renegotiated hosting agreement for better terms
• Expansion expected to contribute additional EBITDA earnings over next 3 years

Negative

• 12% annual interest rate on loan indicates relatively high borrowing costs
• Additional debt burden with asset-backed security requirements

News Market Reaction

+15.27%

1 alert

+15.27% News Effect

On the day this news was published, ABTS gained 15.27%, reflecting a significant positive market reaction.

Data tracked by StockTitan Argus on the day of publication.

Hong Kong, March 19, 2025 (GLOBE NEWSWIRE) -- Abits Group Inc (the “Company”) (NASDAQ: ABTS), a bitcoin mining and related services company operating in the United States, announced today that its wholly owned subsidiary, Abit USA, Inc. (“Abit USA”), has secured a $3.0 million loan from an unrelated third party to fund the purchase of new Antminer S19XP machines for its new operational expansions in Memphis, Tennessee. The deployment of these miners is expected to be completed by the end of March or early April 2025, effectively doubling Abit USA’s mining capacity as it expands power capacity from the current 10MW to 22MW. As previously announced, the Memphis hosting facility is expected to come online in the second quarter of 2025. The loan, which carries a simple interest rate of 12% per annum, is secured by Abit USA’s assets located in Duff, Tennessee.

Additionally, the Company is pleased to announce that it has successfully renegotiated and secured improved terms under its Hosting Agreement with a service provider. The enhanced cash flows from this Memphis expansion are expected to contribute additional earnings at the EBITDA level over the next three years.

About Abits Group Inc

Abits Group Inc (formerly Moxian (BVI) Inc), a company organized in the British Virgin Islands in May 2021, is the surviving company following its merger with Moxian, Inc. in August 2021. Abits Group Inc is a new generation digital company, with self-mining operations in the State of Tennessee through a wholly owned subsidiary, ABIT USA, Inc.

Forward-Looking Statements

This announcement contains forward-looking statements as defined in Section 21E of the Securities Exchange Act of 1934 as amended. These forward-looking statements are based on the Safe Harbor provisions of the Private Securities Litigation Reform Act of 1995 and may be governed by terms such as “will,” “expect,” “anticipate,” “future,” “intend,” “plan,” Believe, “estimate”, “potential”, “continue”, “in progress”, “goal”, “guidance expectations” and similar statements are identified. The company may also include in its periodic reports to the US Securities and Exchange Commission (“SEC”), annual reports to shareholders, press releases and other written materials, as well as oral statements from third parties to the company’s management, directors or employees. Any statements that are not historical facts, including statements about the company’s philosophy and expectations, are forward-looking statements that involve factors, risks, and uncertainties that could cause actual results to differ materially from those in the forward-looking statements. These factors and risks include, but are not limited to, the following: company’s goals and strategies; future business development; financial status and operating results; expected growth of bitcoin mining industry and Internet media marketing industry; demand and acceptance of the company’s products and services; the relationship between the company and strategic partners; industry competition; and policies and regulations related to the company’s structure, business and industry. More detailed information about these and other risks and uncertainties is included in the company’s filings with the Securities and Exchange Commission. All information provided in the company’s introduction is the latest information as of the date of publication of the company. Except as provided by applicable law, the company is not obligated to update such information.

For further information, please contact:

Abits Group Inc
Investor Relations
ir@abitsgroup.com

FAQ

What is the size and purpose of ABTS's new loan secured in March 2025?

ABTS secured a $3.0M loan to purchase Antminer S19XP machines for its Memphis expansion, with the loan secured by assets in Duff, Tennessee.

How much will ABTS's mining capacity increase with the Memphis expansion?

The expansion will double mining capacity by increasing power capacity from 10MW to 22MW, expected to be completed by early April 2025.

When will ABTS's new Memphis hosting facility become operational?

The Memphis hosting facility is expected to come online in the second quarter of 2025.

What are the terms of ABTS's new loan for the Memphis expansion?

The loan carries a 12% annual simple interest rate and is secured by Abit USA's assets in Duff, Tennessee.

How will the Memphis expansion impact ABTS's financial performance?

The expansion is expected to contribute additional earnings at the EBITDA level over the next three years.