Abits ABTS

Abits Group Inc. is a company incorporated in the British Virgin Islands that focuses on the operation of bitcoin mining facilities. The company maintains mining operations in the United States through its subsidiaries and seeks to generate bitcoin through the use of specialized hardware.

Revenue is generated primarily from the bitcoin earned through mining activities which the company sells for fiat currency on cryptocurrency exchanges or through over the counter transactions. The company does not derive significant revenue from any other product or service at present.

Within the bitcoin mining industry Abits Group Inc. operates as a mid scale participant that relies on Application Specific Integrated Circuit hardware to compete for block rewards. The company faces competition from large publicly traded mining firms as well as numerous private operators and individual enthusiasts who deploy similar ASIC equipment. Its competitive advantages include access to low cost power through hosting agreements in Tennessee and the deployment of the latest Bitmain Antminer S19 XP machines which deliver a maximum hash rate of 64 terahashes per second per unit.

The company’s customers are primarily cryptocurrency exchanges and other market participants that purchase bitcoin for investment or trading purposes. No specific customer names are disclosed in the filing.