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Abits Group

ABTS
32
Financial - Capital Markets · Financial Services
Price
$1.19
-0.04 (-3.25%)
Market Cap
$2.8M
Exchange
NASDAQ Capital Market
Winston Score
32
Winston is serious
Below-average fundamentals — multiple weak pillars.

Share count rising — dilution

+87.7% over 4y

The company has issued more shares over this period, which dilutes each existing shareholder’s stake.

Diluted shares outstanding: 1.3M (2021) → 2.4M (2025)

Abits Group Inc. is a small financial services company that provides cryptocurrency-related services, primarily focused on Bitcoin mining and digital asset operations. Its core business involves managing and operating Bitcoin mining infrastructure, targeting clients and investors who want exposure to cryptocurrency assets without running the equipment themselves. The company operates in the fast-moving digital asset industry, which is heavily influenced by cryptocurrency prices and regulatory changes.

Abits Group generates revenue by mining Bitcoin and potentially offering related services to clients, though its business model is still developing. The company is small, with a market cap near zero, and currently operates at a loss, as reflected by its negative operating margin. Its competitive position is weak compared to larger, better-funded Bitcoin mining companies that benefit from cheaper electricity and greater scale. The main risk the company faces is the volatile price of Bitcoin — when prices fall, mining becomes unprofitable quickly, putting significant pressure on a business that is already losing money.

Winston Score History

Growth Profile

When traditional metrics don't capture the full picture, these are the signals growth stock investors use instead.

Revenue Growth

+6.0% YoY

YoY Growth Rate

Slow revenue growth

EPS Growth

+36.8% YoY

YoY Growth Rate

EPS growth accelerating

R&D Spend

$0/ year

0.0% of revenue

Below sector average (7%)

Research and development spending

Insider Activity

37.2%ownership

Insiders own a meaningful stake in the company

Cash Position

Cash flow positive

$94,132 cash & investments

Quarterly Free Cash Flow

→ Burn rate stable

Company generates more cash than it spends — no dilution risk from fundraising

Growth context

Abits Group is growing revenue at 6% year-over-year. The Winston Score measures business quality today — these growth metrics show what could matter tomorrow.

The Winston Score above measures business quality today. Growth stocks often score lower because they invest in the future rather than maximising current profits. These metrics show what matters most for evaluating that future.

Score breakdown

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Quality

Gross Margin
47.1%
Healthy — 47.1% gross margin
Operating Margin
-38.9%
Losing money on operations — -38.9%
ROCE
-5.2%
Weak — -5.2% return on capital

Negative ROIC means the business is losing money on every dollar invested in it.

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Growth

Sales YoY
+39.9%
Fast-growing sales (39.9% YoY)
EPS YoY
N/A
Data not available
EPS Consistency
0/8 quarters
Earnings rarely grow — volatile business

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Cash Flow

Cash Conversion
N/A
Data not available
FCF Margin
-36.1%
Burning cash (-36.1%)

Free cash flow is negative. They are burning cash, not generating it.

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Stability

Debt / Equity
0.23
Conservative — low debt load (0.23)
Interest Cover
7.70x
Adequate interest coverage (7.7x)

Interest coverage between 3 and 8. Profits cover interest several times over.

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Valuation

P/E Ratio (TTM)
N/M
Negative earnings — P/E not meaningful
P/E vs Forward
N/A
not available
Data not available

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Dividends

Not applicable for this business.
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