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

1. Operating profit rose to $2.138 million, a 6% increase year-over-year. 2. Bitcoin output decreased due to halving, producing 40.27 bitcoins in 2025. 3. Average bitcoin price increased to $95,843, aiding revenue despite lower output. 4. Company expects better performance in H2 2025 from Memphis hosting facility. 5. Total liabilities surged to $3.47 million following a new loan for expansion.

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Why Bullish?

The operating profit increase and high bitcoin prices suggest financial viability. Historically, similar trends in bitcoin price and operational efficiency led to stock price increases.

How important is it?

The article indicates operational improvements and price increases that could lead to a stock price rise. This development is crucial for ABTS's potential recovery and growth post-loss.

Why Long Term?

Strengthening operations at the Memphis facility will bolster future profits, suggesting sustained growth.

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BTCMARATHONRIOT
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 StatementThis 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 INCCONSOLIDATED 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 INCUNAUDITED 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 theSix 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 

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