Abits Group (ABTS) AI Stock Analysis

• Market Cap: $9.24M
• Dividend Yield: N/A
• Average Volume (3M): 55.63K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.78
• Revenue Growth: 31.69%
• EPS Growth: 86.25%
• Country: US
• Employees: 11
• Sector: Financial
• Sector Strength: 70
• Industry: Financial - Capital Markets
• EPS (TTM): N/A
• Shares Outstanding: 2,369,995
• 10 Day Avg. Volume: 24,097
• 30 Day Avg. Volume: 55,633
• PEG Ratio: 0.28
• Price to Book (P/B): 2.36
• Price to Sales (P/S): 3.65
• P/FCF Ratio: -36.06
• Enterprise Value/Market Cap: 1.27
• Enterprise Value/Revenue: 1.67
• Enterprise Value/Gross Profit: 4.04
• Enterprise Value/Ebitda: 8.51
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 49 Neutral
• Price Target: $4.00 ▼(-22.93% Downside)

The score is primarily held back by continued net losses and negative free cash flow despite improving operating cash flow and a debt-free balance sheet. Technical indicators are bearish (price below key moving averages and negative MACD), and valuation is constrained by a negative P/E, keeping the overall outlook cautious.

Positive Factors

Revenue Growth

Abits Group's strong revenue growth of over 31% indicates robust demand across its diverse sectors, supporting long-term business expansion.

Strong Equity Position

A strong equity position with zero debt enhances financial stability and provides flexibility for strategic investments and growth.

Innovation and Sustainability

Focus on innovation and sustainability positions Abits Group to capitalize on long-term industry trends and consumer preferences.

Negative Factors

Negative Cash Flow

Negative free cash flow indicates challenges in covering operational costs and funding growth initiatives, impacting financial health.

Weak Profitability

Weak profitability and negative margins suggest operational inefficiencies, which could hinder long-term financial performance.

Persistent Losses

Persistent losses undermine financial stability and could limit the company's ability to invest in growth and innovation.

Abits Group Business Overview & Revenue Model

Company Description

Abits Group Inc., a digital company, engages in the provision of bitcoin mining and related services in the United States. The company was formerly known as Moxian (BVI) Inc and changed its name to Abits Group Inc. in November 2023. Abits Group Inc. was incorporated in 2021 and is based in Tsim Sha Tsui, Hong Kong.

How the Company Makes Money

Abits Group (ABTS) generates revenue through a multifaceted business model that leverages its diverse portfolio. The company earns income from the sale of its technology products and software solutions, which cater to both individual consumers and large enterprises. In the energy sector, ABTS capitalizes on the growing demand for sustainable alternatives by offering renewable energy products and services, including solar panels and energy management systems. Additionally, ABTS benefits from its consumer goods division, which markets a wide range of products to meet everyday needs. Strategic partnerships with key players in various industries further bolster the company's revenue streams, providing access to new markets and enhancing its competitive edge.

Abits Group Financial Statement Overview

Summary

Financials show an improving but unproven turnaround: revenue rebounded strongly in 2024 and losses narrowed materially, the company has no debt, and operating cash flow has been positive in 2023–2024. Offsetting this, net income remains negative, ROE is still negative, and free cash flow is still negative, indicating profitability and self-funding are not yet established.

Income Statement

Revenue rebounded sharply in 2024 (to ~$6.7M from ~$1.7M in 2023), but growth was negative year-over-year and profitability remains weak. Gross profit was positive in 2024 with a ~50% gross margin, and losses narrowed materially versus 2022–2023; however, net income was still negative (~-$0.9M) and net margin remained below zero. Overall, the trajectory is improving from very large losses, but earnings quality and consistency are not yet proven.

Balance Sheet

The balance sheet is conservatively financed with no debt in 2021–2024, which reduces financial risk and adds flexibility. Equity remains sizable (~$10.4M in 2024) versus assets (~$11.4M), but equity has trended down from 2022, reflecting cumulative losses. Returns on equity are still negative, indicating the company has not yet converted its capital base into sustained profits.

Cash Flow

Operating cash flow turned and stayed positive in 2023–2024 (~$1.8–$1.9M), a notable improvement from negative operating cash flow in 2020–2022 and supportive of near-term liquidity. However, free cash flow remained negative across the period (including ~-$0.7M in 2024), suggesting ongoing cash needs for reinvestment or working capital. Cash generation is improving, but the business is not yet consistently self-funding after investments.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	7.04M	6.71M	1.68M	164.43K	219.33K	946.47K
Gross Profit	2.91M	3.38M	1.23M	-296.86K	219.33K	946.47K
EBITDA	1.38M	1.86M	-7.59M	-15.26M	-2.68M	279.01K
Net Income	-1.25M	-931.71K	-12.61M	-22.65M	-2.74M	72.72K
Balance Sheet
Total Assets	13.50M	11.37M	12.32M	24.53M	7.74M	2.30M
Cash, Cash Equivalents and Short-Term Investments	145.14K	1.12M	884.20K	2.51M	2.51M	5.25K
Total Debt	2.63M	0.00	0.00	0.00	0.00	359.55K
Total Liabilities	3.47M	990.35K	1.01M	613.46K	1.17M	1.89M
Stockholders Equity	10.03M	10.38M	11.31M	23.92M	6.57M	400.77K
Cash Flow
Free Cash Flow	-3.81M	-679.63K	-7.49M	-40.02M	-1.10M	-1.73M
Operating Cash Flow	1.82M	1.92M	1.76M	-7.32M	-1.10M	-1.73M
Investing Cash Flow	-4.69M	-1.66M	-3.36M	-32.71M	0.00	0.00
Financing Cash Flow	2.63M	0.00	0.00	40.00M	3.60M	1.13M

Abits Group Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.19
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For ABTS, the sentiment is Negative. The current price of 5.19 is below the 20-day moving average (MA) of 5.21, below the 50-day MA of 5.49, and above the 200-day MA of 5.12, indicating a bearish trend. The MACD of -0.42 indicates Positive momentum. The RSI at 22.02 is Positive, neither overbought nor oversold. The STOCH value of 4.40 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for ABTS.

Abits Group Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	68 Neutral	$18.00B	11.42	9.92%	3.81%	9.73%	1.22%
ABTS	49 Neutral	$9.24M	-6.65	-11.74%	―	31.69%	86.25%
MEGL	43 Neutral	$6.33M	-4.70	-7.67%	―	-33.80%	-1609.52%
MIGI	42 Neutral	$4.71M	-0.32	―	―	-11.39%	79.96%
NCPL	41 Neutral	$4.89M	-0.06	-99.67%	―	-53.14%	56.40%
LGHL	40 Underperform	$380.02K	>-0.01	-164.77%	―	-200.22%	76.90%

Abits Group Corporate Events

Abits Group Names Kai Zhang Chief Financial Officer as Veteran CFO Retires

Abits Group Inc announced that its long-serving Chief Financial Officer, Wanhong Tan, tendered his resignation on December 17, 2025, due to retirement, with his departure effective December 31, 2025, and confirmed that his exit did not arise from any disagreement with management or the board. On December 24, 2025, the board appointed Kai Zhang, previously the company’s finance department manager with experience in securities analysis and corporate accounting, as CFO effective January 1, 2026, a move that signals continuity in Abits Group’s financial reporting and governance as it transitions leadership in a key executive role.

The most recent analyst rating on (ABTS) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Abits Group stock, see the ABTS Stock Forecast page.

Abits Group Reports Strong Q3 2025 Growth and Operational Gains

On December 10, 2025, Abits Group Inc. announced its unaudited financial results for the third quarter of 2025, highlighting significant growth and operational efficiencies. The company reported a 27.5% increase in revenue from its Duff, Tennessee site, achieving a profit of $0.76 million, while its Memphis hosting facility contributed $0.43 million. Overall, operating profit before depreciation and overheads rose by 207.1% compared to the previous year, and the loss before taxation narrowed significantly. These results underscore the company’s strategic investments and operational improvements, positioning it strongly within the bitcoin mining industry.

Abits Group Announces Results of 2025 Annual Shareholders Meeting

On November 21, 2025, Abits Group Inc held its annual meeting of shareholders in Hong Kong, where key decisions were made, including the election of directors and the ratification of Audit Alliance LLP as the independent auditor for the fiscal year ending December 31, 2025. These outcomes reflect the company’s ongoing governance and operational strategies, potentially impacting its industry positioning and stakeholder relationships.