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

Phoenix groupblockchain listed in Abu Dhabi and Encryption solutions companyAmazon has signed a power purchase agreement for 80 MW in Ethiopia, marking its strategic entry into the African market.

The deal, completed in partnership with Abu Dhabi-based cybersecurity firm Data7, will secure sustainable energy for Phoenix’s growth. Bitcoin mining Operations, and supplies are scheduled to begin in the second quarter of this year.

The company did not reveal the location of the center or the size of the deal.

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

Manaf Ali, the company’s CEO, described the expansion as a step to strengthen its position as one of the largest Bitcoin mining companies in the world.

The expansion into Ethiopia, “following the announcement of our North Dakota location, is a strong testament to the Phoenix Group’s accelerating global momentum,” Mr. Ali said.

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

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

The mining process involves solving complex mathematical calculations and algorithms to authenticate transactions and produce new digital currencies. These calculations take up a lot of computer resources, resulting in very high power usage.

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

With a total capacity of over 765 MW, the company develops, operates and manages cryptocurrency mining data centers across the UAE, US, Canada and CIS countries.

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

The company’s expansion into Ethiopia underscores 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 Negatian, CEO of global mining operations at Phoenix Group. “We are actively preparing to launch our South American operations in 2025, further diversifying our global footprint. This is how we execute on a global scale, and this is how we are building the future of DeFi.”