Cash flow conversion is highly disconnected from earnings, as evidenced by an OCF/NI ratio of -6.91 in 2025Q4, highlighting the company's struggle to maintain liquidity amidst volatile mining rewards.
Abits Group Inc. (ABTS) cash flow statement — 12-year operating, investing & financing cash flows
| Metric | TTM | Dec'25 | Dec'24 | Dec'23 | Dec'22 | Dec'21 | Sep'20 | Sep'20 | Sep'19 | Sep'18 | Sep'17 | Sep'16 | Sep'14 |
|---|
| Cash from Operations | 2.55M | 1.41M | 1.92M | 1.76M | -7.32M | -1.1M | -1.73M | -1.73M | -1.18M | -6.15M | -8.61M | -7.5M | -2.11M |
| Operating CF Growth % | 184.49% | -26.26% | 9.18% | 124% | -563.61% | 36.44% | -47.26% | -47.26% | 80.86% | 28.57% | -14.77% | -256.3% | - |
| Net Income | -7.94M | -2.87M | -909.66K | -12.59M | -21.52M | -2.74M | 72.72K | 72.72K | 300.45K | -8.6M | -13.69M | -13.81M | -4.79M |
| Depreciation & Amortization | 7.45M | 3.53M | 2.63M | 4.97M | 6.26M | 2.87M | 0 | 0 | 681.6K | 681.6K | 1.1M | 1.88M | 78.57K |
| Deferred Taxes | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 96.51K | -49.46K | 0 |
| Other Non-Cash Items | 1.51M | 741.59K | -15.26K | 7.36M | 12.56M | -1.68M | 1.46M | 1.46M | -1.51M | -282.81K | 5.25M | 7.12M | 2.6M |
| Working Capital Changes | 1M | 10.09K | 200.38K | 2M | -4.62M | 455.57K | -1.81M | -1.81M | -648.05K | 1.79M | 826.32K | 1.11M | 6.13K |
| Cash from Investing | -5.79M | -4.33M | -1.66M | -3.36M | -32.71M | 0 | 0 | 0 | 0 | 0 | -68.49K | -525.38K | 667.73K |
| Purchase of Investments | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Sale/Maturity of Investments | 0 | 0 | 936.4K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Net Investment Activity | 0 | 0 | 936.4K | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Acquisitions | 0 | 0 | 936.4K | 0 | 128 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Other Investing | -1.08M | -1.23M | 936.4K | 5.89M | -2M | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 897.45K |
| Cash from Financing | 2.15M | 1.88M | 0 | 0 | 40M | 3.6M | 1.13M | 1.13M | 897.29K | 6.49M | 8.46M | 5.8M | 3.16M |
| Dividends Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Share Repurchases | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Stock Issued | 1.65M | 0 | 0 | 0 | 40M | 3.98M | 1.27M | 1.27M | 400K | 1.01M | 9.08M | 2.66M | 0 |
| Net Stock Activity | 1.65M | 0 | 0 | 0 | 40M | 3.98M | 1.27M | 1.27M | 400K | 1.01M | 9.08M | 2.66M | 0 |
| Debt Issuance (Net) | -1.13M | 1000K | 0 | 0 | 0 | -387.48K | 0 | 0 | 497.29K | 1000K | -113.73K | 1000K | 1000K |
| Other Financing | -750K | 0 | 0 | 0 | 0 | 0 | -137.74K | -137.74K | 0 | 330K | -500K | 0 | 0 |
| Net Change in Cash | -1.1M | -1.04M | 234.73K | -1.62M | -2.12K | 2.49M | -420.38K | -420.38K | 125.89K | 281.24K | -123.68K | -2.23M | 0 |
| Exchange Rate Effect | -11.77K | 2.6K | -22.05K | -20.05K | 20.28K | -5.98K | 179.37K | 179.37K | 0 | 0 | 0 | 0 | 0 |
| Cash at Beginning | 83.84K | 1.12M | 884.2K | 2.51M | 2.51M | 19.4K | 425.63K | 425.63K | 299.74K | 18.49K | 142.17K | 2.37M | 271 |
| Cash at End | 79.01K | 83.84K | 1.12M | 884.2K | 2.51M | 2.51M | 5.25K | 5.25K | 425.63K | 299.74K | 18.49K | 142.17K | 1.77M |
| Interest Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Income Taxes Paid | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 |
| Free Cash Flow | -3.38M | -2.91M | -679.63K | -7.49M | -40.02M | -1.1M | -1.73M | -1.73M | -1.18M | -6.15M | -8.68M | -8.03M | -2.34M |
| FCF Growth % | - | -328.57% | 90.93% | 81.27% | -3530.62% | 36.44% | -47.26% | -47.26% | 80.86% | 29.13% | -8.11% | -243.76% | - |
Quick answers to the most common questions about buying ABTS stock.
Abits Group Inc. (ABTS) generated $1.4M in net cash from operating activities in 2025. This reflects the cash generated directly from core business operations.
Abits Group Inc. (ABTS) reported negative free cash flow of $2.9M in 2025, indicating capital requirements exceeded cash from operations.
Abits Group Inc. (ABTS) spent $3.1M on capital expenditures in 2025. CapEx represents the cash invested in physical assets like property, plant, and equipment to maintain or grow the business.
Key Metrics
Top Statement Risk
Imminent liquidity and insolvency
Earnings Quality Remains Highly Disconnected
Based on reported financial statements, ABTS exhibits a persistent disconnect between net income and operating cash flow, with the OCF/NI ratio reaching an extreme -6.91 in 2025Q4, suggesting that reported losses do not fully capture the underlying cash volatility inherent in the company's mining operations.
The wide variance between net income and operating cash flow suggests that non-cash items, particularly depreciation and amortization, are masking the true cash-burn nature of the business. Investors should monitor this divergence as it indicates that accounting profitability is not currently aligned with the actual cash-generating capacity of the mining fleet.
Free Cash Flow Volatility Persists
As indicated by recent quarterly data, ABTS's free cash flow trajectory remains erratic, swinging from a negative $3.6M in 2025Q2 to a positive $686.4K in 2025Q4, which highlights the extreme sensitivity of the company's cash position to fluctuating Bitcoin mining rewards and operational costs.
The inability to maintain consistent positive free cash flow suggests that the company is struggling to achieve the scale necessary to offset its high fixed-cost base. This inconsistency may indicate that the business model is currently reliant on sporadic capital injections rather than sustainable operational cash generation.
Capital Intensity Outpacing Revenue Growth
According to historical data, ABTS maintains a high capital intensity, with CapEx/Revenue ratios reaching as high as 85.4% in 2024Q4, which suggests that the company is forced to reinvest heavily in hardware just to maintain its existing hash rate capacity in a competitive market.
This high level of capital expenditure relative to revenue implies that the company's mining equipment may be aging rapidly, necessitating constant reinvestment to remain viable. Such high capital intensity appears to be a significant drag on the company's ability to achieve long-term financial self-sufficiency.
Working Capital Swings Mask Instability
Based on the provided figures, working capital changes have been highly volatile, shifting from a $1.8M inflow in 2025Q4 to a $1.7M outflow in 2025Q2, which suggests that the company's cash management is heavily influenced by timing differences in mining reward liquidations and operational payables.
The erratic nature of these working capital movements may indicate a lack of disciplined cash management or an inability to effectively time the conversion of mined assets into liquid currency. This volatility warrants further investigation into the company's internal processes for managing its digital asset inventory and vendor obligations.