Phoenix Group has expanded its Bitcoin mining capacity in Ethiopia to 132 MW with a new 52 MW site. The firm aims to leverage low-cost, renewable energy for operations. Following a strong IPO in late 2023, the company is diversifying into stablecoin projects alongside its mining initiatives.
Phoenix Group has made headlines by boosting its Bitcoin mining capabilities in Ethiopia with an addition of 52 megawatts (MW). This brings their total mining capacity in the country up to 132 MW and their global capacity to over 500 MW. Co-founder and CEO Munaf Ali shared that their strategy primarily focuses on acquiring sites with vast reserves of low-cost energy. He believes initiatives like this are essential not just for current growth but also for establishing a stronghold in the industry.
The expansion news follows the company’s earlier agreement in January to secure 80 MW of power in Ethiopia. At that time, they announced plans for a new Bitcoin mining facility expected to become operational in the second quarter of 2025. This latest 52 MW installation will be rolled out in two phases. Initially, 20 MW will power around 5,300 air-cooled mining units, targeting a hashrate of 1.2 exahashes per second. The final stage aims for a total of 52 MW, employing water cooling to achieve an estimated 2.4 exahashes per second; phase two should wrap up by late Q2 2025.
For context, an exahash represents the computational power necessary to measure Bitcoin mining operations, reflecting how many trillions of calculations a network performs every second. Reza Nedjatian, CEO of the mining and data centre division, accentuated that the power will come from renewable sources. He noted, “With 132 MW now running on clean hydropower, we’re thrilled to set a new standard for sustainable mining in Africa and executing large-scale operations in energy-rich regions.”
Phoenix Group is also known for its swift growth, having transitioned to a public company through a listing on the Abu Dhabi Securities Exchange in late 2023. They reported an astounding oversubscription of 33 times their initial public offering (IPO), which raised $371 million by offering 907,323,529 shares. Following this event, their share price surged by 50%, jumping from an opening of 2.25 dirhams ($0.60) to around 1.50 dirhams ($0.41). Shares are currently trading at approximately $7.94.
The company isn’t just about Bitcoin mining; it’s diversifying its portfolio. In 2024, Tether—known for being a leading stablecoin provider—unveiled plans for a new stablecoin pegged to the United Arab Emirates dirham, collaborating with Phoenix Group and Green Acorn Investments. As the firm grows, it seems they’re aiming for even broader horizons.
