Phoenix Group Boosts Bitcoin Mining Capacity in Ethiopia by 52 MW

Phoenix Group, a prominent Bitcoin mining firm, has expanded its mining capacity in Ethiopia by an additional 52 megawatts (MW), bringing its total capacity in the region to 132 MW. This expansion is part of the company's broader strategy to leverage low-cost, abundant energy sources for its operations. The new capacity is expected to significantly enhance the firm's global mining capabilities, which now exceed 500 MW across five countries.

The expansion in Ethiopia is a strategic move for Phoenix Group, aligning with its goal of securing prime locations with abundant, low-cost energy. The new site will be developed in two phases. The first phase will utilize 20 MW to power 5,300 air-cooled mining units, generating an expected hashrate of 1.2 exahashes per second. The second phase, scheduled for completion by the end of the second quarter of 2025, will fully utilize the 52 MW capacity, employing water cooling to achieve an estimated hashrate of 2.4 exahashes per second. An exahash is a unit of computational power used to measure the speed of cryptocurrency mining networks, particularly Bitcoin.

The new mining site in Ethiopia will be powered by clean hydropower, reinforcing Phoenix Group's commitment to sustainable mining practices. This initiative not only creates significant value for the company but also solidifies its position as a leader in the industry. The firm's co-founder and CEO, Munaf Ali, emphasized the importance of such initiatives in driving the company's growth and sustainability.

Phoenix Group's expansion in Ethiopia follows a previous agreement signed in January, which secured the right to 80 MW of power in the region. The new site is part of the firm's ongoing efforts to increase its mining capacity and leverage renewable energy sources. The company's mining, artificial intelligence, and data center subsidiary, led by CEO Reza Nedjatian, highlighted the significance of this development in setting a new benchmark for sustainable mining in Africa.

Phoenix Group's rapid growth and strategic initiatives have positioned it as a key player in the Bitcoin mining industry. The firm became a publicly-traded company following its late 2023 listing on the Abu Dhabi Securities Exchange, with an initial public offering (IPO) that saw overwhelming demand. The company's shares rapidly rose by 50% following the $371 million IPO, reflecting investor confidence in its growth prospects.

In addition to its Bitcoin mining operations, Phoenix Group is involved in other activities within the digital asset industry. In 2024, the firm partnered with Tether, the largest stablecoin provider, and Green Acorn Investments to launch a new stablecoin pegged to the United Arab Emirates dirham. This collaboration underscores the company's diverse interests and its role in shaping the future of digital assets.