Introduction
In a notable development within the cryptocurrency mining sector, the Phoenix Group has inaugurated a state-of-the-art hydropower-driven mining operation in Addis Ababa, Ethiopia. This new facility, boasting a capacity of 30 megawatts (MW), is the result of a collaboration with the Ethiopian Electric Power (EEP) and is strategically placed at the Bole Lemi Industrial Park. The site covers 6,250 square meters and is meticulously designed to cater to advanced cryptocurrency mining activities as well as future computational demands.
Facility Capabilities
By utilizing Ethiopia’s abundant and sustainable hydropower resources, the facility enhances Phoenix Group’s existing blockchain operations by contributing an impressive 1.9 exahashes per second (EH/S) to its overall processing power. This move marks another significant step towards the company’s aspirational goal of achieving a global compute capacity of 1 gigawatt (GW).
Strategic Expansion
Phoenix Group’s expansion efforts in Ethiopia are reflective of the country’s ambition to convert its abundant electrical supply into valuable foreign currency. Earlier, the company secured a power purchase agreement (PPA) with EEP for 80 MW in early 2025, which was shortly followed by an additional 52 MW in April of the same year, culminating in a total of 132 MW secured for operations in the region. This latest hydropower facility signals Ethiopia’s aspirations to become a key player in the sustainable digital infrastructure landscape across Africa.
Leadership Insights
Munaf Ali, the Co-founder and Group CEO of Phoenix Group, highlighted the strategic significance of the facility in the company’s growth blueprint, stating, “This deployment represents a major advancement in Phoenix’s global growth strategy… Ethiopia provides a unique blend of renewable energy sources, stable long-term energy visibility, and a favorable government partnership… essential as we aim for 1GW and reinforce our commitment to renewable energy.”
Broader Implications
The establishment of this mining facility not only aligns with Phoenix Group’s objectives but also dovetails with Ethiopia’s broader plans for technological advancement and industrial development, including efforts to attract investment and monetize energy exports. Following the recent earnings report by Phoenix, financial analysts from H.C. Wainwright & Co. maintained a positive outlook, reiterating a “Buy” rating with a price target of AED 3.00 (approximately $0.82). Ali expressed that the report reflects the firm’s strategic execution and builds investor confidence in their global expansion strategy.
Conclusion
The launch of the Ethiopian site represents a significant transition for Phoenix Group, as it evolves from being purely a cryptocurrency mining operation to a more diversified digital infrastructure entity that is set to facilitate a range of services, including AI hosting, compute leasing, and high-performance computing (HPC) functionalities.
