Phoenix Group enters Africa with Bitcoin mining project in Ethiopia

Abu Dhabi-listed Phoenix Group has signed an 80-megawatt (MW) power purchase agreement (PPA) in Ethiopia, marking its expansion into the African market. The agreement, made in collaboration with Data7, an Abu Dhabi-based cybersecurity firm, will supply sustainable energy to Phoenix’s Bitcoin mining operations, with energy provision expected to commence in the second quarter of 2025, The National News reported.

The specific location and financial terms of the project have not been disclosed. However, the deal is part of Phoenix's larger growth strategy, which includes its planned dual listing on the Nasdaq and entry into South American markets. Founded in 2017, the company has gained significant backing, including from Abu Dhabi’s International Holding Company.

“We are strategically positioning ourselves at the forefront of a financial revolution,” said Munaf Ali, Phoenix Group’s CEO.

The move into Ethiopia, which follows recent developments in North Dakota, underscores the company's accelerating global presence. Phoenix’s expansion into Africa is part of a broader initiative to capitalise on regional energy potential, which could bolster its position as one of the world’s largest Bitcoin miners.

Ethiopia, with its affordable electricity and substantial hydropower resources, is quickly becoming an attractive destination for Bitcoin miners. As bne IntelliNews reported in October 2024, local Bitcoin mining operations in the country consume around 600 MW of power. The Ethiopian grid is supported by abundant renewable energy sources, making the nation an ideal location for energy-intensive cryptocurrency mining operations.

Phoenix's expansion into Ethiopia follows similar moves by other mining companies, including BIT Mining, which has already established operations in the country. These global players’ entry into Ethiopia is indicative of a broader trend of increased interest in Africa's crypto-mining potential, particularly in countries like Ethiopia, which are rich in renewable energy.

This growth also aligns with Ethiopia's broader economic reform agenda. The National Bank of Ethiopia (NBE) has been making moves towards modernising the financial sector, including exploring central bank digital currencies (CBDCs) and liberalising banking investments. As bne IntelliNews previously reported, in the middle of last year, the NBE was noted for laying the groundwork for a CBDC as part of its strategy to modernise the economy and integrate it into the digital financial ecosystem.

Phoenix Group’s ventures, such as this new mining project in Ethiopia, exemplify the company's ambition to strengthen its position in the global cryptocurrency market. The National News added that the company is capitalising on Africa’s growing importance as a hub for digital currency operations.