Abu Dhabi-listed Phoenix Group enters Africa with Ethiopian Bitcoin mining deal

The new site is scheduled to be supplied with the energy in the second quarter

An array of Bitcoin mining units inside a container at a CleanSpark centre in College Park, Georgia, in the US. Bloomberg

Phoenix Group, an Abu Dhabi-listed blockchain and crypto solutions company, has signed an 80-megawatt power purchase agreement in Ethiopia, marking its strategic entry into the African market.

The deal, finalised in partnership with Abu Dhabi-based cyber security firm Data7, will secure sustainable energy for Phoenix’s growing Bitcoin mining operations, with supplies set to start in the second quarter of this year.

The company did not disclose the location of the centre or the size of the deal.

The Ethiopian project is part of Phoenix’s broader growth plans, which includes continuing discussions for a dual listing on Nasdaq and planned operations in South America. Founded in 2017, the company is backed by significant shareholders, including Abu Dhabi’s International Holding Company.

Munaf Ali, the company’s chief executive, described the expansion as a move to strengthen its position as one of the world’s largest Bitcoin miners.

The expansion in Ethiopia “on the heels of our North Dakota site announcement, is a powerful testament to Phoenix Group's accelerating global momentum”, said Mr Ali.

“We are aggressively building out our mining capabilities … we are not just expanding our operations … we are strategically positioning ourselves at the forefront of a financial revolution where cryptocurrencies will play a central role in creating a more inclusive and dynamic global economy.”

Crypto-mining farms are large-scale centres designed to mine cryptocurrencies such as Bitcoin and Ethereum using a complex network of software and computers.

The mining process involves solving intricate mathematical calculations and algorithms to authenticate transactions and produce new digital currencies. These calculations harness a lot of computer resources, which results in extremely high energy use.

Phoenix offers a range of services, such as cloud mining, data centre hosting, crypto trading, and Web3 game publishing and distribution.

With a total installed capacity of more than 765MW, it develops, operates and manages crypto mining data centres across the UAE, US, Canada and Commonwealth of Independent States countries.

In August 2023, it announced a collaboration with Muscat-based Green Data City to develop a $300 million crypto-mining farm in Oman.

The company’s expansion into Ethiopia emphasises its focus on using regional energy potential to increase operations, with further plans to explore more African and South American markets.

“Our ambitions extend beyond Africa,” said Reza Nejatian, chief executive of global mining operations at Phoenix Group. "We are actively preparing to launch operations in South America in 2025, further diversifying our global footprint. This is how we execute on a global scale, and this is how we build the future of decentralised finance."