Phoenix Group Expands Bitcoin Mining Capacity in Ethiopia
Phoenix Group, a prominent player in the Bitcoin mining industry, has unveiled plans to increase its mining capacity in Ethiopia by an additional 52 megawatts (MW), bringing its total capacity in the region to 132 MW. This expansion, announced on April 29, marks a significant milestone as the company’s overall global mining capacity now surpasses 500 MW.
Strategic Expansion and Future Plans
The company’s co-founder and CEO, Munaf Ali, emphasized the importance of their expansion strategy, which focuses on acquiring locations with abundant and affordable energy sources. He described the new Ethiopian project as a crucial move that not only adds immediate value but also strengthens the organization’s future in the market.
This latest development builds upon a prior agreement secured in January, which granted Phoenix Group access to 80 MW of energy in Ethiopia.
At that time, the company disclosed plans for a new Bitcoin mining site anticipated to launch in the second quarter of 2025. The 52 MW expansion will be constructed in two phases: the first phase will activate 20 MW to operate 5,300 air-cooled mining units, targeting a hash rate of 1.2 exahashes per second. The complete site is expected to reach operational capacity by the end of Q2 2025, utilizing water cooling to achieve an impressive hash rate of 2.4 exahashes per second.
Understanding Exahashes
For technical clarity, an exahash denotes a unit of computational speed used predominantly to assess cryptocurrency mining networks, particularly Bitcoin, denoting the number of trillions of hashes that can be computed each second.
Commitment to Renewable Energy
Reza Nedjatian, the CEO of Phoenix Group’s mining and data center division, noted the plant’s reliance on renewable energy sources, proudly stating that with 132 MW powered by clean hydropower, the company is setting benchmarks for sustainable mining practices across Africa.
Public Listing and Future Growth
Phoenix Group became a publicly traded entity following a successful listing on the Abu Dhabi Securities Exchange in late 2023. The company’s IPO was met with remarkable demand, achieving a 33-fold oversubscription and raising $371 million by offering 907,323,529 shares. Following this listing, the value of Phoenix Group’s shares surged by 50%, increasing from an opening price of 2.25 dirhams ($0.6) to approximately 1.50 dirhams ($0.41), and current trading places the shares around $7.94.
Diverse Ventures Beyond Mining
Beyond Bitcoin mining, Phoenix Group has made headlines with its aggressive acquisition strategy, recently securing $187 million worth of mining equipment in a single deal in early 2024. Additionally, Tether, the leading stablecoin issuer, has announced a partnership with Phoenix Group to develop a new stablecoin tied to the United Arab Emirates dirham. This collaboration signifies Phoenix’s expanding role in diverse sectors within the digital asset landscape.
