Abu Dhabi-based Phoenix Group (ADX: PHX), the first UAE-listed Bitcoin mining company, reported a net loss of $153.6 million for Q1 2025, a significant downturn from the $66.2 million profit in the same period last year. The loss is primarily attributed to an unrealized loss of $142.4 million on digital assets held at fair value through profit or loss, contrasting with an unrealized gain of $73.1 million in Q1 2024.
The company’s revenue declined by 54.7% year-over-year to $31.3 million, down from $68.9 million. Gross profit also saw a sharp decrease of 73%, falling to $6.3 million. Despite these challenges, Phoenix Group’s gross mining margins improved to 30% in Q1 2025, up from 24% in the previous quarter.
Phoenix Group’s mining revenue remained relatively stable at $20.7 million, a slight decrease from $21.6 million in Q1 2024. However, trading revenue, including ASIC sales, dropped significantly to $6.8 million from $27.7 million. The company’s total assets decreased to $810.4 million as of March 31, 2025, down from $962.4 million at the end of December 2024.
Looking ahead, Phoenix Group aims to become one of the top five Bitcoin miners globally by 2026. The company recently launched a 20-megawatt site in Texas, boosting its total operational capacity to over 500 megawatts across five countries.
CEO Munaf Ali emphasized the company’s resilience, stating,
“Phoenix Group’s position as a top 10 global Bitcoin miner, underpinned by our strategic site locations in Canada, Ethiopia, Oman, the UAE, and the U.S., provides us inherent resilience to market fluctuations.”
A Cautious Quarter with Long-Term Ambitions
Despite a challenging first quarter marked by steep unrealized losses and revenue decline, Phoenix Group remains focused on long-term growth. The company’s continued expansion into global mining sites and improving mining margins reflect a strategic pivot toward operational efficiency and geographic diversification.
As crypto markets remain volatile, Phoenix Group’s next moves—particularly its U.S. expansion and ambitious goal to become a top-five global miner by 2026—will be closely watched by investors and industry observers alike.
Bumbel will continue tracking the financial performance and global positioning of leading crypto infrastructure players like Phoenix Group.
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