Abits Group Inc. ( ABTS ) stock fell Monday after the company said it had entered into definitive agreements with institutional investors for a registered direct offering expected to raise approximately $2.1 million.

The company agreed to sell 792,452 Ordinary Shares and pre-funded warrants at $2.65 per share. Each pre-funded warrant was priced at $2.64999, reflecting the public offering price minus a $0.00001 exercise price.

The pre-funded warrants are immediately exercisable and may be exercised at any time until exercised in full. For each pre-funded warrant sold, the number of Ordinary Shares offered will decrease on a one-for-one basis.

Gross proceeds are expected to be approximately $2.1 million before fees and expenses. The transaction is expected to close on or about Feb. 24, 2026, subject to customary closing conditions.

Abits Group ( ABTS ) describes itself as a new-generation digital center with in-house bitcoin mining operations. The offering is intended to support general corporate purposes and working capital, alongside existing cash resources.

Technical Analysis

Currently, the stock is trading 20.24% below its 20-day simple moving average (SMA), indicating significant short-term weakness. Over the past 12 months, shares have decreased and are closer to their 52-week lows than their highs, reflecting ongoing challenges for the company. The RSI is at 50, which is considered neutral territory, suggesting that the stock is neither overbought nor oversold at this time.

The combination of neutral RSI and the absence of MACD data suggests that the stock is in a wait-and-see mode, with no strong directional momentum currently indicated.

Key Resistance: $3.00

Key Support: $2.50

Short Interest Falls

Short interest in Abits ( ABTS ) declined from 38.30K to 33.43K shares in the latest reporting period, representing 2.13% of the float. Based on an average daily volume of 7.96K shares, it would take about 4.2 days for short sellers to cover their positions.

ABTS Price Action: Abits Group ( ABTS ) shares were down 20.11% at $2.98 at the time of publication on Monday, according to Benzinga Pro data.