ABTS announces FY2025 Q1 results

Rhea-AI Summary

Abits Group (NASDAQ: ABTS) reported its FY2025 Q1 unaudited results, showing a revenue decline of 17.2% to $1.78 million compared to $2.15 million in Q1 2024. The company's mining operations produced 18.86 coins, marking a 50.4% decrease due to the bitcoin halving event in April 2024. Despite lower output, gross profit reached $0.82 million with a healthy margin of 46.1%, supported by higher average bitcoin prices. In March 2025, ABTS secured a $3 million loan to purchase 2,850 Antminer S19XP units, which have been installed at their new Memphis facility. The 12MW Memphis operation is expected to contribute significantly to Q2 2025 results.

Positive

• Maintained strong gross margin of 46.1% despite halving event
• Secured $3M loan to acquire 2,850 new Antminer S19XP units
• New 12MW Memphis facility operational, expected to boost Q2 results
• Higher average bitcoin prices helped maintain profitability

Negative

• Revenue declined 17.2% YoY to $1.78M
• Mining output dropped 50.4% to 18.86 coins due to halving
• Cost of revenue increased 11.6% despite lower production
• Took on $3M in debt for expansion

Insights

Cryptocurrency Mining Analyst

ABTS shows resilience despite 50% Bitcoin halving impact with strong 46% margins, new mining capacity offers positive outlook.

ABTS has released unaudited Q1 FY2025 results that reveal both challenges and opportunities. Revenue declined 17.2% year-over-year to $1.78 million, while costs increased 11.6% to $0.96 million. This resulted in a gross profit of $0.82 million, down from $1.29 million in the previous year.

The key driver behind these results was the Bitcoin halving event from April 2024, which reduced mining rewards by 50%. This directly impacted ABTS's mining output, which fell 50.4% to 18.86 coins during the quarter. However, the 46.1% gross margin remains impressive and reflects the company's operational efficiency in a post-halving environment.

What's particularly notable is the higher average Bitcoin price during this period, which helped offset some of the reduced coin production. This demonstrates the mining operation's built-in hedge against reward reductions - as halving events historically correlate with price appreciation cycles.

Looking forward, ABTS has positioned itself for growth by securing a $3 million loan to acquire 2,850 Antminer S19XP units. These high-efficiency miners have been installed at a new Memphis facility with 12MW power capacity. This expansion is significant because it represents a substantial increase in hashrate that should boost production beginning in Q2. The S19XP miners are among the more energy-efficient models, which should help maintain healthy margins despite the reduced block rewards.

The timing of this expansion is strategic, coming right after a halving event when less efficient miners typically exit the market, potentially reducing network difficulty temporarily. This could allow ABTS to capitalize on a potentially more favorable mining environment in the coming quarters.

Hong Kong, May 29, 2025 (GLOBE NEWSWIRE) -- Abits Group Inc (the “Company”) (NASDAQ: ABTS)

The Company is pleased to announce certain highlights of its operating results for the first quarter of fiscal year 2025 These figures have not been reviewed or audited by the Company’s auditors.

(‘mn)		2025Q1				2024Q1				+/- （％）
Revenue from operations			1.78				2.15				-17.2
Costs of revenue			(0.96	)			(0.86	)			+11.6
Gross profit from operations			0.82				1.29

The gross profit from operations reflect the profitability of its mining operations in the Duff plant, before amortization of its mining assets and before deducting group’s central general and administration overheads.

During the first quarter of 2025, the Company’s mining operations had a total output of 18.86 coins, a drop of 50.4%, due solely to the halving of mining rewards from late April 2024. Gross profit achieved was $0.82 million but at a margin of 46.1%, it is still very satisfactory, thanks principally to the higher average market price of bitcoin during this period.

As previously announced, in March 2025 the Company secured a $3 million loan to finance the acquisition of 2850 units of Antminer S19XP which have been installed at the hosting facility in Memphis. Revenue from this new site comes onstream in the second quarter and should make a significant contribution to operating results from the output generated by its 12MW power supply.

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 ABTS's Q1 2025 financial results?

ABTS reported Q1 2025 revenue of $1.78M (down 17.2% YoY) and gross profit of $0.82M with a 46.1% margin. Mining output was 18.86 coins, down 50.4% due to the bitcoin halving.

How did the Bitcoin halving affect ABTS's mining operations in Q1 2025?

The Bitcoin halving in April 2024 caused ABTS's mining output to drop by 50.4% to 18.86 coins in Q1 2025, though higher bitcoin prices helped maintain profitability.

What expansion plans did ABTS announce for 2025?

ABTS secured a $3M loan in March 2025 to purchase 2,850 Antminer S19XP units, which were installed at a new 12MW hosting facility in Memphis, expected to contribute to Q2 2025 results.

What was ABTS's gross profit margin in Q1 2025?

ABTS achieved a gross profit margin of 46.1% in Q1 2025, which the company described as 'very satisfactory' due to higher average bitcoin prices.

How much did ABTS's revenue decline in Q1 2025 compared to Q1 2024?

ABTS's revenue declined by 17.2%, from $2.15M in Q1 2024 to $1.78M in Q1 2025.