Abits Group Reports continued growth in Q2

Rhea-AI Summary

Abits Group (NASDAQ: ABTS), a leading data center operator specializing in bitcoin mining in the US, reported continued growth in Q2 2024. Despite a decrease in mining output to 24.09 bitcoins from 36.9 in Q1 due to the halving event, the company achieved a higher hash rate of 360 PH/s. Abits expects to reach 400 PH/s in Q3.

The company introduced hydro cooling in new production lines, improving energy efficiency. A 100,000-gallon water reservoir ensured uninterrupted production. Abits acquired a 55-acre property in Wisconsin for $0.65 million, planning to build a 22MW site expandable to 35MW. Construction is set to begin in Q3 2024 for completion in Q1 2025. Despite industry challenges, Abits remains confident in bitcoin mining and seeks to diversify revenue streams.

Positive

• Increased hash rate to 360 PH/s in Q2, with expected growth to 400 PH/s in Q3
• Introduction of hydro cooling for improved energy efficiency
• Acquisition of 55-acre property in Wisconsin for $0.65 million
• Plans to build a new 22MW site, expandable to 35MW

Negative

• Mining output decreased to 24.09 bitcoins in Q2 from 36.9 in Q1 due to halving event

Insights

Financial Analyst

Abits Group's Q2 report reveals a mixed performance. The 34.7% decrease in bitcoin mining output (from 36.9 to 24.09) is concerning, albeit largely due to the halving event. However, the company's strategic investments show promise:

• Increased hash rate to 360 PH/s, with expectations of 400 PH/s next quarter
• Implementation of energy-efficient hydro cooling
• Acquisition of a $0.65 million property for expansion

The planned 22MW site (expandable to 35MW) signals growth potential, but investors should monitor construction progress and regulatory approvals. While the company's commitment to the bitcoin mining industry is clear, the mention of exploring "other revenue streams" suggests a prudent diversification strategy in the face of industry challenges.

Tech Expert

Abits Group's technological advancements are noteworthy. The shift to hydro cooling is a game-changer, offering superior energy efficiency and reduced environmental impact compared to traditional air cooling. This could lead to significant cost savings and improved sustainability credentials.

The increase in hash rate to 360 PH/s, with a target of 400 PH/s, demonstrates the company's commitment to scaling operations. However, the real test will be maintaining profitability post-halving. The 100,000-gallon water reservoir's role in ensuring uninterrupted production during maintenance is a smart operational move, highlighting the company's foresight in infrastructure planning.

Market Research Analyst

Abits Group's performance reflects broader industry trends post-halving. The bitcoin mining sector faces challenges, including increased competition and reduced block rewards. Abits' strategy of operational expansion and efficiency improvements aligns with industry best practices.

The planned 22MW site in Wisconsin represents a significant capacity increase, potentially positioning Abits for future growth. However, investors should note the execution risks associated with construction and regulatory approvals. The company's hint at diversification is prudent, given the volatile nature of bitcoin mining. Monitoring Abits' ability to innovate and adapt in this challenging environment will be important for assessing its long-term prospects.

Hong Kong, Aug. 05, 2024 (GLOBE NEWSWIRE) -- Abits Group Inc (NASDAQ: ABTS), a leading data center operator specializing in bitcoin mining operations in the United States, is pleased to report its continued progress in the second quarter of 2024.

Mining output in this quarter was 24.09 bitcoins, compared with 36.9 bitcoins in the first quarter, the decline largely attributed to the halving of mining rewards in late April. This decrease occurred despite the Company achieving a higher hash rate in the second quarter of 360 PH/s as new production was brought online. We expect to hit a hash rate of about 400 PH/s in the next quarter.

The improvement in the hash rate is attributed to the Company’s decision to introduce hydro cooling in its new production lines. This alternative cooling method, instead of the use of air fans, has the advantage of being more energy-efficient and less pollutive in terms of noise and dust. The 100,000-gallon water reservoir completed in Q1 enabled production to remain uninterrupted during the water maintenance shutoffs.

As previously reported, the Company acquired a 55-acre property in the town of Bloomer, Chippewa County in Wisconsin in April at a cost of $0.65 million. The Company intends to build a new 22MW site, with options to expand to 35MW. All requisite approvals should be obtained by the latter half of Q3 to allow construction to begin for completion in the first quarter of 2025.

The Company has reaffirmed its confidence in the bitcoin mining industry despite industry challenges and will continue to explore other revenue streams to maximize returns.

About Abits Group Inc.

Abits Group Inc. (NASDAQ: ABTS) is a U.S.-based digital data center operator specializing in Bitcoin self-mining operations. For more information, please visit www.abitsgroup.com or email ir@abitgrp.com.

Safe Harbor Statement

This announcement contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of1995. 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.

FAQ

What was Abits Group's (ABTS) bitcoin mining output in Q2 2024?

Abits Group (ABTS) reported a bitcoin mining output of 24.09 bitcoins in Q2 2024, down from 36.9 bitcoins in Q1 due to the halving event in late April.

What hash rate did Abits Group (ABTS) achieve in Q2 2024?

Abits Group (ABTS) achieved a hash rate of 360 PH/s in Q2 2024 and expects to reach 400 PH/s in the next quarter.

What new cooling method did Abits Group (ABTS) introduce in Q2 2024?

Abits Group (ABTS) introduced hydro cooling in its new production lines in Q2 2024, which is more energy-efficient and less pollutive than air fans.

What property acquisition did Abits Group (ABTS) make in April 2024?

In April 2024, Abits Group (ABTS) acquired a 55-acre property in Bloomer, Chippewa County, Wisconsin for $0.65 million to build a new 22MW site, expandable to 35MW.