Core Points - Abits Group Inc announced an amendment to its memorandum and articles of association to allow for an unlimited number of ordinary and preferred shares [1] - The company approved a share consolidation at a ratio of one-for-fifteen to comply with Nasdaq listing requirements [2] - The share consolidation will reduce the number of ordinary shares from 35,554,677 to approximately 2,370,300 and preferred shares from 5,000,000 to approximately 333,333 [5] Company Overview - Abits Group Inc, organized in the British Virgin Islands, is engaged in bitcoin mining through its subsidiary ABIT USA, Inc, with operations in Tennessee [6]

Core Insights - Abits Group Inc. has announced a significant expansion of its operations with a new 10MW hosting facility in Memphis, Tennessee, effectively doubling its mining capacity [1][2] - The deployment of 400 units of Antminer T21 at its Duff operation has resulted in a total hash rate of approximately 500PH/s, and the Memphis facility will increase the total power capacity to 22 MW, raising the total output to approximately 1EH/s [2][3] - The expansion is part of the company's strategic vision to strengthen its position in North America while maintaining operational efficiency and technological advancement [4] Company Operations - The new Memphis facility complements existing operations in Tennessee and is positioned to enhance mining capabilities in a region known for competitive energy costs and reliable infrastructure [3] - The company has initiated the first phase of miner procurement with an order of 800 Antminer T21 for delivery by the end of January, with an additional 1,350 units scheduled for procurement and deployment before the end of Q1 2025 [3] Strategic Vision - The expansion marks a pivotal moment in the company's growth trajectory, aligning with its strategic vision to enhance its operational capabilities in the North American market [3][4]

Core Insights - Abits Group Inc. has deployed 500 S19XP mining machines at its Duff, Tennessee site, enhancing its total hash rate by 70,500 terahashes (TH) [1] - The new machines are expected to be fully operational by the end of October 2024, marking a significant expansion in the company's operational capacity [1] - This strategic move reinforces Abits Group's commitment to strengthening its position in the U.S. Bitcoin mining industry [1] Company Overview - Abits Group Inc. is a U.S.-based digital data center operator specializing in Bitcoin self-mining operations [2] - The company focuses on innovative technologies and operational excellence to expand its footprint in the Bitcoin mining sector [2]

Group 1 - Abits Group Inc has been granted an additional 180 calendar days to comply with NASDAQ's minimum bid price requirement, extending the deadline to April 7, 2025 [1] - To regain compliance, the closing bid price of the Company's common shares must be at least $1.00 per share for at least ten consecutive business days by the new deadline [1] - Abits Group Inc is engaged in bitcoin mining and related services in the United States, with self-mining operations in Tennessee through its subsidiary ABIT USA, Inc [2] Group 2 - Abits Group Inc was formed following a merger with Moxian, Inc. in August 2021 and is organized in the British Virgin Islands [2]

Financial Performance - Abits Group Inc reported a revenue of $3.67 million for the six months ended June 30, 2024, which included 61.5 bitcoins produced, a significant increase compared to the previous period when there was no production due to construction activities [1][6] - The gross profit from mining operations was $0.75 million after accounting for direct costs of $2.68 million, primarily driven by electricity costs of $1.1 million and depreciation of $1.27 million [1][6] - The loss before tax was reduced to $0.14 million, a notable improvement from a loss of $3.5 million in the previous period [2][6] Operational Developments - Administrative and general overheads increased to $1.11 million, nearly doubling from $0.7 million, due to the addition of new staff and increased maintenance and insurance costs as the data center became fully operational [2] - The company improved its water supply in April, ensuring continuous operation of all production lines, supported by a 100,000-gallon reservoir [2] Balance Sheet Overview - The balance sheet showed minimal changes, with the purchase of more Ant-miner machines for $0.86 million and a property acquisition in Wisconsin for $0.65 million [3] - Cash and cash equivalents decreased to $0.4 million as of June 30, 2024, down from $0.88 million at the end of 2023 [4][8] Future Outlook - The company anticipates lower production output for the remainder of 2024 due to the halving of mining rewards that occurred in late April, but it aims to maintain strict cost control and secure more hosting contracts to enhance revenue [3][6]

Core Insights - Abits Group Inc. has reported significant growth in Bitcoin mining capacity, with hash rates increasing from approximately 285 PH/s to nearly 325 PH/s in Q1 2024, and projections to exceed 360 PH/s in Q2 2024 [1][2][3] Operational Achievements - The company completed key infrastructure projects in Q1, including the expansion of a 1 MW facility and the construction of a 100,000-gallon water reservoir to enhance production stability [2] - The workforce at the LaFollette site remains stable with four dedicated employees focused on enhancing their expertise [2] Future Plans - Abits Group is negotiating with its power provider to secure an additional 2 MW of power capacity, aiming for a dynamic 24/7 operation by July 1, 2024 [2] - The company has acquired a 55-acre property in Wisconsin for a new 20 MW site, with construction set to begin in Q2 and continue through Q4 [3]

Core Insights - Abits Group Inc. has reported significant growth in Bitcoin mining capacity, with hash rates increasing from approximately 285 PH/s to nearly 325 PH/s in Q1 2024, and projections to exceed 360 PH/s in Q2 2024 [1][2][3] Group 1: Operational Achievements - The company successfully launched new production lines, contributing to the increase in hash rates [1] - Key infrastructure projects completed in Q1 include the expansion of a 1 MW facility and the construction of a 100,000-gallon water reservoir, enhancing production stability and operational efficiency [2] - The workforce at the LaFollette site remains stable with four dedicated employees focused on enhancing expertise [2] Group 2: Future Initiatives - Abits Group is negotiating with its power provider to secure an additional 2 MW of power capacity, aiming for a dynamic 24/7 operation by July 1, 2024 [2] - The company has acquired a 55-acre property in Wisconsin for a new 20 MW site, with construction set to begin in Q2 and continue through Q4 [3] - CEO Forrest Deng expressed confidence in the company's stable performance and strategic investments, positioning Abits Group for continued success [3]

Financial Performance - The company generated a total output of 43.93 bitcoins in the fiscal year 2023, resulting in revenue of approximately $1.68 million[185]. - Total revenue for the year ended December 31, 2023, was $1,681,533, a significant increase from $164,428 in 2022, representing a growth of approximately 923%[335]. - The company reported a comprehensive loss of $12,605,303 for the year ended December 31, 2023, compared to a loss of $21,520,114 in 2022, indicating an improvement of about 41%[335]. - The loss from operations for the year ended December 31, 2023, was $11,013,871, down from $19,260,227 in 2022, showing a reduction of about 43%[335]. - Net loss for the year ended December 31, 2023, was $12,585,250, a significant improvement from a net loss of $21,520,114 for the year ended December 31, 2022, representing a reduction of approximately 41%[341]. - The basic and diluted loss per ordinary share improved from $(0.629) in 2022 to $(0.355) in 2023, indicating a reduction in loss per share of about 43%[335]. - Net cash used in operating activities decreased to $1,755,913 in 2023 from $7,315,421 in 2022, indicating improved operational efficiency[341]. - The company reported a provision for dimunition in value for miners of $7,364,650 in 2023, down from $11,889,000 in 2022, showing a reduction of about 38%[341]. - The addition/utilization of digital assets resulted in a positive cash flow of $5,893,591 in 2023, compared to a negative cash flow of $2,000,000 in 2022[341]. - The total cash outflows for the year were $1,601,034, a significant improvement from $22,401 in the previous year[341]. Assets and Liabilities - Digital assets decreased from $7,087,747 as of December 31, 2022, to $1,194,157 as of December 31, 2023, reflecting a decline of approximately 83%[333]. - Total assets decreased from $24,531,417 in 2022 to $12,318,268 in 2023, a reduction of about 50%[333]. - Stockholders' equity fell from $23,917,962 in 2022 to $11,312,660 in 2023, a decrease of approximately 53%[333]. - Current liabilities increased from $613,455 in 2022 to $1,005,608 in 2023, an increase of approximately 64%[333]. - Cash and cash equivalents decreased to approximately $0.88 million, prompting the sale of 32.82 bitcoins to supplement operating cash[186]. - Cash and cash equivalents at the end of 2023 were $884,199, down from $2,505,286 at the end of 2022, reflecting a decrease of approximately 65%[341]. Operational Developments - The company completed the construction of a new mining center in September 2023 at a total cost of $6.5 million[184]. - The company purchased land for $1.2 million in April 2023 to support its bitcoin mining operations[184]. - The company has not entered into any material contracts other than in the ordinary course of business[233]. - The company did not issue new shares in 2023, contrasting with the issuance of 16 million new shares in 2022, which raised $40 million for bitcoin mining operations[344]. Management and Governance - The company’s name was changed from "Moxian (BVI) Inc" to "Abits Group Inc." effective November 17, 2023, with a new ticker symbol "ABTS" on the Nasdaq Capital Market[166]. - The company has a total of 11 full-time employees, with 4 in Finance and Administration and the rest in the bitcoin mining business[216]. - Mr. Conglin Deng, the Chief Executive Officer, has an annual base salary of $120,000 and is awarded 600,000 restricted stock units (RSUs) over three years[201]. - Mr. Wanhong Tan, the Chief Financial Officer, also has an annual base salary of $120,000 and is awarded 180,000 RSUs over three years[202]. - The Audit Committee is chaired by Lionel Khuat Leok Choong and includes Tao Xu and Chuan Zhan, focusing on financial reporting and compliance[204]. - The Compensation Committee, chaired by Tao Xu, is responsible for reviewing and approving executive compensation and incentive plans[207]. - The Corporate Governance and Nominating Committee, chaired by Chuan Zhan, oversees the selection of director candidates and corporate governance practices[208]. - The company adopted a Code of Business Conduct and Ethics on November 14, 2023, applicable to all directors, officers, and employees[214]. - The company has complied with NASDAQ requirements, maintaining at least 50% independent directors on the board[209]. - The total compensation for the Chief Executive Officer and Chief Financial Officer remained consistent at $120,000 for both 2022 and 2023[199]. Compliance and Internal Controls - As of December 31, 2023, the company's disclosure controls and procedures were deemed ineffective due to a lack of formal documented controls applicable to all officers and directors[292]. - Management identified material weaknesses in internal control over financial reporting, including a lack of understanding of NASDAQ requirements and inadequate mining record maintenance[297]. - The company's internal controls over financial reporting were not effective in detecting inappropriate application of US GAAP rules as of December 31, 2023[296]. - There were no changes in internal controls over financial reporting that materially affected the company's reporting during the period covered[299]. - The audit committee consists of independent directors, with Khuat Leok Choong meeting the criteria of an audit committee financial expert[300]. - Management has initiated remediation measures, including educating senior management on NASDAQ listing requirements and designing controls over financial reporting[298]. Tax and Regulatory Matters - The company is classified as a Passive Foreign Investment Company (PFIC), which affects U.S. Holders' tax obligations regarding capital gains and distributions[267]. - U.S. Holders who make a Qualified Electing Fund (QEF) election will not be subject to PFIC tax and interest charge rules for shares held during the PFIC status[267]. - A purging election allows U.S. Holders to recognize gain as if they sold shares at fair market value, impacting their adjusted tax basis and holding period[268]. - Non-U.S. Holders generally are not subject to U.S. federal income tax on dividends or gains unless connected to a U.S. trade or business[275]. - The company does not expect to be treated as a PFIC for the taxable years ending December 31, 2021, and 2022[257]. Risks and Challenges - The upcoming halving of bitcoin rewards in April 2024 poses challenges for miners, although previous halvings have historically led to price increases[187]. - Inflationary pressures may adversely affect operating results, but the company has not experienced significant impacts to date[287]. - The company has not entered into any hedging transactions to mitigate interest rate risk, as operations are not directly sensitive to interest rate fluctuations[285]. - The subsidiary in China incurs annual operating expenses of approximately RMB 1 million, exposing the company to minimal foreign exchange risk[286]. - The company did not identify any cybersecurity threats that materially affected its business strategy or financial condition in 2023[312]. - The company has implemented cybersecurity risk management processes, including limited access to critical systems and continuous monitoring[310].

Core Points - Abits Group Inc has received a notification from Nasdaq regarding non-compliance with the minimum bid price requirement due to its ordinary shares closing below $1.00 for 30 consecutive business days [1] - The company has a compliance period of 180 calendar days, until October 9, 2024, to regain compliance by having its share price at least $1.00 for a minimum of 10 consecutive business days [2] - If compliance is not achieved by the deadline, the company may be eligible for an additional 180-day grace period [2] Company Overview - Abits Group Inc is organized in the British Virgin Islands and operates in the United States, specifically in Tennessee, through its wholly owned subsidiary ABIT USA, Inc. The company also has operations in Beijing and Hong Kong, China [3]

Core Insights - Abits Group Inc has released its operations update for Q4 2023, reporting a maximum mining hash rate of 298 PH/s and production of 43.94 bitcoins [1] - The company has completed the construction of its mining center in Tennessee, which is equipped with 1180 units of S19XP Hydro miners and 400 units of S19J Pro miners [1] - A new generation of dry-cooler-type hydro containers is under construction, expected to increase the hash rate to 340 PH/s upon completion in Q1 2024 [2] Company Overview - Abits Group Inc is a U.S.-based Digital Data Center operator focused on bitcoin self-mining operations [3]