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HONG KONG - Abits Group Inc (NASDAQ:ABTS), a bitcoin mining company with a market capitalization of $13.4 million, announced the implementation of a share consolidation strategy to meet Nasdaq’s listing requirements. According to InvestingPro data, the company’s stock has experienced significant volatility, declining over 60% in the past year. The company’s board of directors has approved a one-for-fifteen share consolidation of its ordinary and preferred shares. This move is aimed at regaining compliance with Nasdaq Marketplace Rule 5550(a)(2), which governs the minimum bid price of listed securities.
The share consolidation became effective on February 17, 2025, following the company’s amendment of its memorandum and articles of association to allow for an unlimited number of shares. The actual consolidation of shares will take place in the marketplace on March 10, 2025. Based on InvestingPro’s Fair Value analysis, the stock appears to be undervalued at its current trading price of $0.41, though investors should note the company’s challenging financial metrics, including negative returns on assets of -54.79%. Following the consolidation, Abits Group’s stock will continue to trade on the Nasdaq Capital Market under the ticker ABTS, albeit with a new CUSIP Number, G6S34K113.
Due to the consolidation, the total number of issued and outstanding ordinary shares will be reduced from 35,554,677 to approximately 2,370,300, and preferred shares from 5,000,000 to about 333,333, subject to the redemption of fractional shares. These fractional shares will be redeemed by the company at the closing price of the ordinary shares on March 10, 2025. Despite the reduction in the number of shares, the company will maintain an unlimited authorization to issue ordinary and preferred shares.
Abits Group Inc, previously known as Moxian (BVI) Inc, emerged from a merger with Moxian, Inc. in August 2021 and has since been operating in the digital space with a focus on self-mining operations through its subsidiary, ABIT USA, Inc., located in Tennessee. The company generated revenue of $5.34 million in the last twelve months, though InvestingPro analysis reveals concerning metrics about cash burn rate and short-term obligations. Subscribers to InvestingPro can access 12 additional key insights about ABTS’s financial health and market performance.
This announcement is based on a press release statement and contains forward-looking statements regarding the company’s future operations and market performance. These statements are subject to various factors and risks that could cause actual outcomes to differ materially from those projected. Abits Group advises that more detailed information about these risks can be found in its filings with the Securities and Exchange Commission.
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