Abits Group Inc (NASDAQ: ABTS) is pleased to announce its half-year results for the period ended June 30, 2024.

In a period when production is sustained throughout the six months, revenue grew to $3.67 million comprising 61.5 bitcoins, compared to the previous period when construction of the mining center in Tennessee was in progress and there was no production.. After accounting for direct costs of revenue amounting to $2.68 million, primarily electricity costs of $1.1 million and depreciation of $1.27 million, the gross profit from the mining operation was $0.75 million.

The loss before tax of the group was $0.14 million after accounting for administrative and general overheads.his result compares favorably with the previous period when the loss was $3.5 million. Administrative and general overheads during the period almost doubled to 1.11 million compared to $0.7 million as new staff were added to support production on a 24/7 basis as well as an increase on maintenance and insurance costs now that the data center was fully operational.

In April, the Company further improved its water supply and since then, all production lines have been kept running. During the peak construction periods, a 100,000-gallon reservoir helps to subsidize any shortages from the water company during the day and is replenished at night when consumption is much lower. The hydro cooling method introduced with the new batch of machines helps to reduce noise and dust instead of the traditional air cooling by fans.

There is no substantial change in the Balance Sheet of the Group except that more Ant-miner machines were purchased for $0.86 million and a piece of property in Wisconsin acquired for $0.65 million in the period to June. Cash and cash balances dwindled to $0.4 million as of June 30, 2024.

With the halving of mining rewards in late in April, production output will be much lower for the rest of 2024. However, the Company will maintain a strict control of its costs and hopes to secure more hosting contracts to improve on its revenue.

For more information, please visit www.abitsgroup.com or email ir@abitgrp.com.

ABITS GROUP INCCONSOLIDATED BALANCE SHEETS

        As of        
    Note   June 30, 2024(Unaudited)     December 31, 2023  
ASSETS                    
Current Assets                    
Cash and cash equivalents       $ 396,583     $ 884,199  
Other receivables and prepayments   3     370,801       774,345  
                     
Total current assets         767,384       1,658,544  
Digital assets   4     1,546,184       1,194,157  
                     
Property, equipment and vehicles   5     9,888,446       9,465,567  
Construction-in-progress         -       -  
TOTAL ASSETS         12,202,014       12,318,268  
                     
LIABILITIES AND SHAREHOLDERS’ EQUITY                    
                     
Other payables and accruals       $ 920,700     $ 1,005,608  
                     
Stockholders’ Equity                    
                     
Preferred stock, $0.001010 par value, authorized; 50,000,000 shares, 5,000,000 shares issued and outstanding as of June 30, 2024 and December,31 2023       $ 5,050     $ 5,050  
Common stock, $0.001 par value, authorized: 50,000,000 shares. Issued and outstanding: 35,554,677 shares as of June 30, 2024 and December,31, 2023         35,554       35,554  
Additional paid-in capital         89,290,193       89,290,193  
Accumulated deficit         (77,907,687 )     (77,893,723 )
Accumulated other comprehensive income         (141,796 )     (124,414 )
Total Shareholders’ Equity         11,281,314       11,312,660  
Total Liabilities and Shareholders’ Equity       $ 12,202,014     $ 12,318,268  

ABITS GROUP INCUNAUDITED CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE LOSS

    Six Months Ended     Six Months Ended  
    June 30, 2024     June 30, 2023  
Revenue   $ 3,669,627     $ 7,272  
Direct costs of revenue     (2,680,658 )     (14,666 )
Other operating costs     (241,103 )     (2,802,735 )
Profit/(Loss) from operations     747,866       (2,810,129 )
General and administrative expenses     (1,104,234 )     (692,947 )
Finance expenses     (14,903 )     -  
Fair Value changes for 2024 digital assets     357,308          
Loss before tax     (13,964 )     (3,503,076 )
Income tax     -       -  
Loss after tax     (13,964 )     (3,503,076 )
Foreign exchange adjustment     (17,382 )     45,292  
Comprehensive loss for the period   $ (31,346 )   $ (3,457,784 )
                 
Basic and diluted loss per ordinary share   $ (0.001 )   $ (0.097 )
Basic and diluted average number of ordinary shares outstanding     35,554,677       35,554,677  

ABITS GROUP INC.UNAUDITED CONSOLIDATED STATEMENTS OF CHANGES TO STOCKHOLDERS’ EQUITY

    Preferred Shares     Ordinary Shares     Additionalpaid-in     Accumulated     Accumulatedothercomprehensive        
    Number     Amount     Number     Amount     capital     deficit     income     Total  
                                                                 
Balance, December 31, 2022     5,000,000       5,050       35,554,677       35,554       89,290,193       (65,308,474 )     (104,361 )     23,917,962  
Net loss for the year     -       -       -       -       -       (12,585,249 )     (20,053 )     (12,605,302 )
                                                                 
Balance, December 31, 2023     5,000,000       5,050       35,554,677       35,554       89,290,193       (77,893,723 )     (124,414 )     11,312,660  
Net loss for the period                                             (13,964 )     (17,382 )     (31,346 )
Balance, June 30, 2024     5,000,000       5,050       35,554,677       35,554       89,290,193       (77,907,687 )     (141,796 )     11,281,314  

ABITS GROUP INC.

UNAUDITED CONSOLIDATED STATEMENTS OF CASH FLOWS

    For the Six Months Ended     For theSix Months Ended  
    June 30, 2024     June 30, 2023  
Net loss for the period   $ (13,964 )   $ (3,503,076 )
Adjustment to reconcile cash used in operating activities:                
Depreciation of property, and equipment     1,274,028       2,817,256  
                 
Changes in operating assets and liabilities:                
Account receivables     -       53  
Other receivables and prepayments     403,544       (1,101,604 )
Other payables and accruals     (84,909 )     (71,974 )
Digital assets     (352,026 )     2,370,769  
Fixed assets     (1,696,907 )     (1,522,949 )
Cash used in operating activities     (470,234 )     (1,011,525 )
                 
Effect of exchange rates on cash and cash equivalents     (17,382 )     45,070  
Net decrease in cash and cash equivalents     (487,616 )     (966,455 )
Cash and cash equivalents, beginning of period     884,199       2,505,286  
Cash and cash equivalents, end of period   $ 396,583     $ 1,538,831  
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