Company: ABTS
Filing Date: 2025-01-21
Form Type: F-3
Source: 0001493152-25-003076
Chunk: 10

Company: Abits Group Inc
Filing Date: 2025-01-21
Form: F-3
Chunk 10
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 the pool members’ hashing power, identifies new block rewards, records how much work all the participants are doing, and assigns block rewards for successful algorithm solutions in-proportion to the individual hash rate that each participant contributed to a given successful mining transaction. While we do not pay pool fees directly, pool fees are deducted from amounts we may otherwise earn. Fees (and payouts) fluctuate and historically have been approximately 2% on average.

Mining pools are subject to various risks such as disruption and down time. Riot has internally created software that monitors its hashing performance and reward rates to monitor credits for our contributed hashing power. In the event that a pool experiences down time or not yielding returns, our results may be impacted.

| 4 |

We plan to continue to grow a scaled mining operation through the procurement of mining sites and equipment. We have recently implemented several strategic initiatives, including:

| ● | Infrastructure 
 Enhancement    |

| ○ | Expanding                            
 data operating center power capacity |

| ○ | Reducing                                
 curtailment capacity for revenue growth |

| ○ | Installing                                                            
 additional water wells with supporting pumps and filtration equipment |

| ● | Operational 
 Excellence  |

| ○ | Implemented                                                    
 proprietary monitoring software for the mining operations site |

| ○ | Enhanced                                                                   
 site disruption response capabilities through in-house developed solutions |

| ○ | Negotiated                                              
 agreements for potential acquisition of new mining site |

| ○ | Concluded                          
 additional power supply agreements |

At the end of the third quarter 2024, our mining fleet comprises 1,370 units of S19 Hydro XP (featuring hydro-cooling technology), 305 units of S19J Pro, 300 units of T21 and 500 units of S19 XP. We have achieved 21.19 J/TH weighted average fleet efficiency and approximately 430 PH Maximum hash rate.

Corporate History and Structure

ABTS (formerly, Moxian (BVI) Inc) was incorporated as a BVI business company on May 18, 2021 under the laws of the British Virgin Islands. On August 16, 2021, ABTS consummated a merger with its U.S. domiciled parent company, Moxian, Inc., or Moxian, pursuant to which Moxian merged with and into the Company. Following the merger, the Company acquired all the assets, liabilities, rights and obligations of Moxian and became the holding company of the former Moxian subsidiaries.

Moxian was incorporated in