How Is Abits Group Driving Growth and Efficiency in Bitcoin Mining?

October 31, 2024

Abits Group Inc. (NASDAQ: ABTS), a leading digital data center operator specializing in Bitcoin self-mining in the United States, has provided an in-depth look at its operational and financial achievements for the third quarter ending September 30, 2024. The company, known for its robust mining capabilities, shares a range of metrics, financial outcomes, and strategic moves designed to enhance its competitive edge.

Key Operational Highlights

In Q3 2024, Abits Group Inc. showcased a powerful mining fleet comprising 1,370 units of S19 Hydro XP with hydro-cooling technology, 305 units of S19J Pro, and 300 units of T21. By the end of October, an additional 500 units of S19 XP are scheduled for deployment. The company has maintained a weighted average fleet efficiency of 21.19 J/TH, and it achieved a maximum hash rate of approximately 430 PH. However, the mining output in Q3 was 19.54 bitcoins, a drop from 24.1 bitcoins in Q2, primarily influenced by the halving event in April.

Financial Performance

The financial performance for Q3 2024 revealed that Abits Group Inc. generated $1.26 million in revenue from its operations, contributing to a total year-to-date revenue of $4.93 million. A major expense for the company was electricity, with total costs amounting to $0.58 million for the quarter. The average cost stood at $0.0351 per kilowatt-hour, reflecting the inherent operational expenses in the Bitcoin mining industry.

Strategic Developments

Abits Group has been proactive in implementing several strategic initiatives aimed at boosting operational efficiency. Among these was the enhancement of the Duff Site’s power capacity from 10 MW to 12 MW, a development expected to be completed by October 2024. The company also focused on reducing curtailment capacity from 95% to 87.5%, a move aimed at increasing revenue starting in the fourth quarter. Furthermore, the installation of two water wells, complete with supporting pumps and filtration systems, has been scheduled for Q4 completion.

To further strengthen operational oversight, proprietary monitoring software was rolled out at the Duff Site. The company’s response capabilities to site disruptions saw improvements through in-house developed solutions. Additionally, Abits Group has executed a Non-Disclosure Agreement (NDA) for a potential acquisition of a new 10 MW site in Missouri, indicating growth ambitions beyond current operations.

Management Commentary

Conglin (Forrest) Deng, CEO of ABTS, emphasized the company’s continued efforts to enhance operational efficiency and explore expansion opportunities. Deng highlighted the focus on cost optimization in the post-halving environment to meet the company’s annual targets. He expressed confidence in the company’s strong operating cash flow and substantial cash reserves, viewing these as pillars for supporting future strategic initiatives.

Future Projections

Looking ahead, Abits Group is set to deploy 500 units of Antminer S19 XP in October 2024, expecting a hash rate boost by 70 PH. This deployment will elevate the total hash rate capacity beyond 500 PH in Q4. The company is also exploring additional expansion opportunities, reflecting a commitment to maintaining a trajectory of growth and operational excellence.

Conclusion

Abits Group Inc. (NASDAQ: ABTS), a premier digital data center operator with a focus on Bitcoin self-mining within the United States, has unveiled a comprehensive overview of its operational and financial achievements for the third quarter ending September 30, 2024. The company, recognized for its strong mining capabilities, has shared an extensive range of metrics, financial results, and strategic initiatives aimed at enhancing its market position and competitive edge. Throughout the third quarter, Abits Group Inc. has demonstrated significant progress in expanding its mining operations, optimizing energy usage, and improving overall efficiency. Their efforts have not only resulted in increased Bitcoin production but have also strengthened their financial standing in a highly competitive market. By investing in cutting-edge technology and infrastructure, Abits Group Inc. continues to position itself as a leader in the digital data center space, ensuring sustainable growth and profitability for its stakeholders in the ever-evolving cryptocurrency landscape.

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