Abit Group's mining ops profit up 6% YoY to $2.138mln, despite halved rewards.

• Abits Group reports $2.138mln operating profit from mining ops, up 6% YoY • Mining rewards halved, output fell to 40.27 bitcoins in H1 2025 • Average price of bitcoins rose to $95,843, up from $59,628 in 2024 • Memphis hosting facility contributed to revenue in Q4 • Loss before interest and taxation was $0.25mln, up from $0.14mln in 2024 • Interest expense reached $90,000 due to loan for Memphis investment

Abits Group Inc. (NASDAQ: ABTS) has released its unaudited financial results for the first half of 2025, showing a mixed performance despite the halving of Bitcoin mining rewards. The company reported an operating profit of $2.138 million from mining operations, up by 6% year-over-year (YoY). This improvement was achieved despite a reduction in total Bitcoin output to 40.27 BTC, as the average price of Bitcoin rose to $95,843, compared to $59,628 in the same period last year.

The company's Memphis hosting facility, which began operations in April 2025, contributed to the revenue in the fourth quarter. However, the loss before interest and taxation widened to $0.25 million, up from $0.14 million in the same period last year. This increase was primarily due to higher depreciation charges for additional mining equipment. After accounting for an interest expense of $90,000 from a loan taken to finance the Memphis investment, the operating result before taxation was a loss of $0.34 million.

Abits Group's main mining site at Duff, Tennessee, is now operating at an optimum load of 12mW with an output of approximately 500 pH/s. The company successfully installed and operated two water wells in the first quarter of 2025, reducing water expenses by approximately $25,000 per month. However, electricity costs increased due to natural gas price hikes, but the company maintained an average cost per kWh below $0.04.

The Memphis hosting joint venture, which began operations in April 2025, now has 2,600 S19XP miners installed, contributing an output of approximately 300 pH/s. The company has been exchanging its Bitcoin holdings for cash to meet working capital requirements since the second half of 2023. In the first half of 2025, it sold 27.15 bitcoins, with its holdings valued at $1.96 million as of June 30, 2025. In March 2025, the company took an external loan of $3.0 million to finance the equipment for the Memphis hosting facility.

Abits Group expects the second half of 2025 to show an improvement for the full year as the Memphis hosting facility kicks into full gear, assuming stable or appreciating Bitcoin prices. However, the company's cash position has weakened significantly, falling to $145,143 from $1.12 million at the end of 2024, signaling potential liquidity concerns.

References:
[1] https://www.stocktitan.net/news/ABTS/abits-group-inc-reports-unaudited-financial-results-for-the-first-kr7fympup9h3.html
[2] https://www.morningstar.com/news/globe-newswire/9511756/abits-group-inc-reports-unaudited-financial-results-for-the-first-half-of-2025