Company: ABTS
Filing Date: 2025-12-02
Form Type: F-3/A
Source: 0001493152-25-025631
Chunk: 19

Company: Abits Group Inc
Filing Date: 2025-12-02
Form: F-3/A
Chunk 19
---
 the pool. As additional miners competed for the limited supply of blocks, individuals found that they were working for months without finding a block and receiving any reward for their mining efforts. To address this variance, miners started organizing into pools to share mining rewards more evenly on a pro rata basis based on total hashing capacity contributed to the mining pool.

The mining pool operator provides a service that coordinates the computing power of the independent mining enterprise. Fees are paid to the mining pool operator to cover the costs of maintaining the pool. The pool uses software that coordinates 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 second quarter 2025, our mining fleet comprises 1,300 units of S19 Hydro XP (featuring hydro-cooling technology), 100 units of S19J Pro and 650 units of T21. We have operated at approximately 500 PH hash rate.

Corporate History and Structure

Abits(formerly, Moxian (BVI) Inc) was incorporated as a BVI business company on May 18, 2021 under the laws of the British Virgin Islands