Phoenix Group Expands Bitcoin Mining Capacity in Ethiopia

According to Cointelegraph, Phoenix Group has announced a significant expansion of its Bitcoin mining operations in Ethiopia, adding 52 megawatts (MW) to its existing capacity. This development brings the company's total mining capacity in the country to 132 MW, contributing to a global capacity that now exceeds 500 MW. Munaf Ali, co-founder and CEO of Phoenix Group, emphasized the importance of securing locations with abundant and low-cost energy as part of the firm's strategic growth. He noted that expansions like the one in Ethiopia are crucial for creating value and strengthening the company's market position. This expansion follows a previous agreement in January, where Phoenix Group secured rights to 80 MW of power in Ethiopia. The new mining site is expected to become operational in the second quarter of 2025. The development will occur in two phases, with the initial phase utilizing 20 MW to power 5,300 air-cooled mining units, achieving an anticipated hashrate of 1.2 exahashes per second. The second phase, slated for completion by the end of Q2 2025, will fully utilize the 52 MW capacity with water cooling, aiming for a hashrate of 2.4 exahashes per second. Reza Nedjatian, CEO of Phoenix Group's mining, AI, and data center subsidiary, highlighted the use of renewable energy, stating that the 132 MW capacity is powered by clean hydropower, setting a new standard for sustainable mining in Africa. Phoenix Group's rapid growth is underscored by its successful listing on the Abu Dhabi Securities Exchange in late 2023. The company's initial public offering (IPO) was oversubscribed by 33 times, with shares initially offered at 2.25 dirhams ($0.6) and quickly rising to 1.50 dirhams ($0.41). Currently, shares are trading at approximately $7.94. The firm is recognized for its large-scale mining initiatives, including a notable acquisition of $187 million worth of Bitcoin mining equipment in early 2024. Beyond Bitcoin mining, Phoenix Group is also involved in other ventures. In 2024, Tether, a leading stablecoin provider, announced plans to launch a new stablecoin pegged to the United Arab Emirates dirham, partnering with Phoenix Group and Green Acorn Investments on the project.