Phoenix Group Expands into Africa with Ethiopian Power Deal
Phoenix Group PLC (ADX:PHX), a leading UAE-based tech conglomerate, has announced a significant strategic move into Africa with the acquisition of an 80-megawatt (MW) power purchase agreement (PPA) in Ethiopia. This milestone partnership with Abu Dhabi-based cybersecurity firm Data7 highlights Phoenix Group’s commitment to global diversification and sustainable growth, providing a reliable energy source to support its long-term objectives and advancing responsible digital asset infrastructure development.
Boosting Mining Capacity and Global Presence
The Ethiopian site, set to become operational by Q2 2025, will substantially boost Phoenix Group’s mining capacity, significantly enhancing the exahash rate of its rapidly expanding portfolio. This development cements Phoenix Group’s position as one of the world’s leading Bitcoin miners while advancing its goal of delivering state-of-the-art, globally distributed digital asset infrastructure. The company also plans further expansions in Ethiopia and entry into the South American market in 2025, continuing its trajectory of growth.
“This 80MW expansion in Ethiopia, on the heels of our North Dakota site announcement, is a powerful testament to Phoenix Group’s accelerating global momentum,” said Munaf Ali, CEO of Phoenix Group. “We are aggressively building out our mining capabilities, and this added capacity further solidifies our position as one of the world’s largest Bitcoin miners, fueling our growth trajectory as we prepare for our listing on Nasdaq. We’re not just expanding our operations; we’re 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.”
Reza Nejatian, CEO of Global Mining Operations at Phoenix Group, added: “This project in Ethiopia, significantly increasing our exahash rate, is a clear signal of our ambition to not just participate in, but to lead, the global Bitcoin mining landscape. Ethiopia’s emergence as a key crypto-mining hub provides the perfect platform for our continued expansion, and this is just the first phase of our growth in the country. Our strategic partnership with Data7, enabling the deployment of the latest S21 Hydros, underscores our commitment to leveraging cutting-edge technology to maximize efficiency and solidify our competitive advantage. And our ambitions extend beyond Africa; we’re 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 decentralized finance.”
Leadership Transition and Strategic Direction
This major development comes during a pivotal leadership transition for Phoenix Group. Co-founder and former CEO Seyed Mohammad Alizadehfard (Bijan), who played a foundational role in transforming the company from a private startup to a publicly listed billion-dollar entity on the Abu Dhabi Securities Exchange (ADX), recently stepped down to focus on expanding his investment fund, Cypher Capital. Bijan will remain involved as a major shareholder and trusted advisor.
The transition sees Munaf Ali, a co-founder and previously the Group Managing Director, taking the reins as CEO. This leadership change signals a new chapter for Phoenix Group.
The collaboration between Phoenix Group and Data7 highlights the growing potential for strategic partnerships in Africa and demonstrates Phoenix Group’s proactive approach to leveraging regional strengths while scaling its influence on the global stage.
ADX Listing and Market Performance
Phoenix Group PLC (ADX:PHX) became a publicly listed company on December 5, 2023, with an initial offering price of 1.50 AED per share and a debut trading price of 2.25 AED. The shares are currently trading at 1.23 AED (as of January 22, 2024).
This announcement of an 80MW power purchase agreement in Ethiopia reflects Phoenix Group’s commitment to acquiring valuable assets and expanding mining sites, a positive step that will hopefully deliver greater value to its shareholders and be reflected in its share price.
