Abits Group Inc reports Q1 2025 revenue of $1.78 million, impacted by reduced mining output due to reward halving.
Quiver AI Summary
Abits Group Inc. has released its operating results for the first quarter of fiscal year 2025, reporting a revenue decline to $1.78 million from $2.15 million in the same period last year, a 17.2% drop. Costs of revenue increased by 11.6%, leading to a gross profit of $0.82 million at a margin of 46.1%, attributed to higher average bitcoin prices despite a significant reduction in mining output caused by the halving of mining rewards from April 2024. The company notes that it secured a $3 million loan to acquire mining equipment, expected to enhance revenue from a new facility in Memphis, with contributions anticipated in the second quarter. The announcement includes forward-looking statements, cautioning that actual results may differ from projections. For more information, interested parties can contact the company's investor relations.
Potential Positives
- The Company reported a gross profit of $0.82 million with a healthy margin of 46.1%, indicating solid profitability despite a decrease in mining output.
- The higher average market price of bitcoin during the quarter positively impacted the Company's gross profit margins, showcasing resilience in volatile market conditions.
- The recent acquisition of 2,850 units of Antminer S19XP, funded by a $3 million loan, is expected to significantly enhance future revenue generation from the new hosting facility in Memphis.
- The upcoming revenue from the new site, powered by a 12MW power supply, is poised to contribute positively to the Company's operating results in the second quarter of 2025.
Potential Negatives
- Revenue from operations decreased by 17.2% year-over-year, indicating a significant decline in the Company's financial performance.
- The mining output dropped by 50.4%, directly impacting profitability and raising concerns about the sustainability of the business model.
- The financial results have not been reviewed or audited by the Company's auditors, which may lead to questions about the credibility of the information provided.
FAQ
What were Abits Group's Q1 2025 operating results?
For Q1 2025, Abits Group reported $1.78 million in revenue, down 17.2% from Q1 2024.
How did mining operations perform in Q1 2025?
The mining operations produced 18.86 coins, reflecting a 50.4% decrease in output due to halving rewards.
What factors contributed to gross profit in Q1 2025?
The gross profit reached $0.82 million, supported by a favorable average market price of bitcoin despite lower output.
What investment has Abits Group made recently?
In March 2025, Abits Group secured a $3 million loan to acquire and install 2,850 Antminer S19XP units.
When will new revenue from the Memphis facility start?
Revenue from the new Memphis hosting facility is expected to contribute to operating results starting in Q2 2025.
Disclaimer: This is an AI-generated summary of a press release distributed by GlobeNewswire. The model used to summarize this release may make mistakes. See the full release here.
$ABTS Hedge Fund Activity
We have seen 1 institutional investors add shares of $ABTS stock to their portfolio, and 8 decrease their positions in their most recent quarter.
Here are some of the largest recent moves:
- MORGAN STANLEY removed 150,000 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $451,499
- GEODE CAPITAL MANAGEMENT, LLC removed 15,637 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $47,067
- CITADEL ADVISORS LLC added 13,210 shares (+inf%) to their portfolio in Q1 2025, for an estimated $39,762
- MCF ADVISORS LLC removed 12,136 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $36,529
- XTX TOPCO LTD removed 10,852 shares (-100.0%) from their portfolio in Q4 2024, for an estimated $7,475
- UBS GROUP AG removed 3,838 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $11,552
- SIMPLEX TRADING, LLC removed 2,393 shares (-100.0%) from their portfolio in Q1 2025, for an estimated $7,202
To track hedge funds' stock portfolios, check out Quiver Quantitative's institutional holdings dashboard.
Full Release
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
