Abits Group Inc. reported its unaudited third‑quarter 2025 results, showing a total bitcoin output of 13.61 coins from its self‑owned Duff, Tennessee mine and a contribution of $429,832 from its Memphis joint‑venture with Mendenhall LLC. The company’s revenue and operating profit from Duff rose 27.5% and 30.2% year‑over‑year, respectively, driven by higher bitcoin prices and a 12% increase in mining efficiency after the April 2024 halving. Water‑well investments cut the mine’s water bill by 18%, offsetting a modest 2% rise in electricity costs that remained in line with expectations.
The Memphis hosting facility, which accounts for roughly 20% of Abits’ total revenue, generated $429,832 in profit, a 66.5% share of the joint‑venture’s earnings. Management noted that peak‑rate electricity consumption at the Memphis site is higher than projected, and corrective actions—including load‑shifting and equipment upgrades—are underway to bring costs back in line. The joint‑venture’s profitability underscores the company’s strategy to diversify its revenue base beyond the Duff mine.
Abits also disclosed a $3,000,000 loan taken in April 2025 to finance new Antminer S19XP units for the Memphis facility. The loan carries a 12% annual interest rate, with $30,000 in monthly interest payments, and is secured against all assets at the Duff site. The debt addition increases interest expense but is intended to expand mining capacity and capture higher bitcoin prices in the coming quarters.
Management emphasized that the company’s operational efficiencies at Duff—particularly the water‑well savings—are sustaining profitability, while the Memphis site’s higher electricity costs remain a focus. The company’s outlook remains cautious, with guidance tied to bitcoin price volatility and the ongoing implementation of cost‑control measures at Memphis. Investors are watching the company’s ability to convert increased capacity into sustainable earnings as bitcoin prices recover.
Investors reacted negatively to the earnings release, citing persistent losses and negative cash flows as key concerns. Analysts highlighted that while operational improvements at Duff are positive, the company’s overall financial health remains a risk factor, especially given the new debt and the unresolved electricity cost issue at Memphis.
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