Phoenix
Group, the primary UAE-listed Bitcoin (BTC) mining firm (ADX: PHX), reported a loss
of $153.6 million for the primary quarter of 2025, a stark reversal from the
$66.2 million revenue recorded in the identical interval final yr, as the corporate
confronted vital unrealized losses on its digital asset holdings.
The Abu
Dhabi-based firm, which operates throughout buying and selling, internet hosting , mining and
funding verticals, noticed its income drop by 54.7% to $31.3 million in Q1
2025, in comparison with $68.9 million in Q1 2024, in keeping with its monetary
statements launched this week.
The
substantial decline in profitability was primarily attributed to an unrealized
lack of $142.4 million on digital property held at truthful worth by way of revenue or
loss, contrasting sharply with an unrealized acquire of $73.1 million within the
comparable interval final yr.
Phoenix Group Monetary
Metrics: Q1 2024 vs Q1 2025
Monetary Metric
Q1 2024
Q1 2025
Change
% Change
Income
$68.9M
$31.3M
-$37.6M
-54.7%
Gross Revenue
$23.3M
$6.3M
-$17.0M
-73.0%
Web Earnings/(Loss)
$66.2M
-$153.6M
-$219.8M
-332.0%
Digital Property Worth
$273.2M
$300.9M
+$27.7M
+10.1%
Unrealized
Acquire/(Loss) on Digital Property
$73.1M
-$142.4M
-$215.5M
-295.0%
Mining Income
$21.6M
$20.7M
-$0.9M
-4.2%
Buying and selling
Income (ASIC gross sales, and so on.)
$27.7M
$6.8M
-$20.9M
-75.5%
The
firm’s complete property decreased to $810.4 million as of March 31, 2025, down
from $962.4 million on the finish of December 2024. Digital property, which type a
substantial portion of the corporate’s holdings, noticed their worth decline to
$300.9 million from $441.5 million over the identical interval.
The
full-year 2024 report additionally
confirmed a 20–30% year-over-year decline in each income and revenue, regardless of
mining income surging almost 240% to $107 million. The corporate said that internet
outcomes would have proven a lack of “solely” 7% if not for “a number of one-off
transactions” in This fall 2024. These included prices tied to Phoenix Group’s exit
from the CIS area.
Regardless of
challenges, the corporate is specializing in its progress ambitions.
Phoenix Goals for Prime 5
Spot Amongst Bitcoin Miners
Gross
mining margins improved to 30% in Q1 2025, up from 24% within the earlier quarter.
Phoenix Group claims it’s at the moment among the many world’s high 10 Bitcoin miners
and goals to interrupt into the highest 5 by 2026, each in BTC mining and AI knowledge
heart operations.
A key step
towards that objective was the launch of a 20-megawatt web site in Texas, which boosted
its complete operational capability to over 500 megawatts throughout 5 international locations.
Supply: CompaniesMarketCap.com
“Phoenix
Group’s place as a high 10 world Bitcoin miner, underpinned by our strategic
web site areas in Canada, Ethiopia, Oman, the UAE, and the U.S., supplies us
inherent resilience to market fluctuations,” mentioned Munaf Ali, CEO and
Co-Founder.
Munaf Ali, the CEO of Phoenix
“The launch
of our Texas facility strengthens our operational base in North America whereas
reinforcing our industry-leading mining infrastructure and world
diversification technique.”
Self-Mining Exercise Declines
Phoenix
Group’s gross revenue fell to $6.3 million in Q1 2025, in comparison with $23.3 million
in Q1 2024. Common and administrative bills elevated to $8.4 million from
$6.1 million year-over-year, additional pressuring profitability.
The
firm’s mining income, generated from its high-performance computing
operations, amounted to $20.7 million in Q1 2025, marginally decrease than the
$21.6 million reported in the identical interval final yr.
“Bitcoin’s
common worth improved by 12% from $83K in This fall’24 to $94K in Q1’25, however beneficial properties
had been offset by a 12.5% lower in mining rewards on account of larger community
issue,” the corporate wrote in an announcement.
Furthermore,
income from gross sales of ASIC machines, wallets, and gear dropped
considerably to $6.8 million from $27.7 million.
Trying
forward, the corporate faces further challenges. After the reporting date, there
was a big decline available in the market worth of sure digital property held by
the Group. The estimated discount in worth of MMX Token held by the Group is
roughly 85%, equal to round $41.9 million, in keeping with a notice in
the monetary statements.
From Abu Dhabi to Wall
Road
A yr in the past,
FinanceMagnates.com reported that Phoniex turned Abu Dhabi Securities Alternate’s
(ADX) first Bitcoin mining firm—a kind of enterprise extra generally seen in
markets like the US. After
elevating $370 million in its IPO, the agency later printed monetary outcomes
exhibiting its income had dropped to one-third of the earlier yr’s complete.
Nonetheless, it managed to develop its asset base considerably.
In March,
Phoenix introduced that its CEO Ali, had expanded his stake within the firm.
Since November 2024, he has bought over 20 million extraordinary shares by way of
open market transactions.
The transfer
comes as Phoenix Group explores a
potential itemizing in the US and continues to scale its Bitcoin
mining operations in North America.
Phoenix
Group, the primary UAE-listed Bitcoin (BTC) mining firm (ADX: PHX), reported a loss
of $153.6 million for the primary quarter of 2025, a stark reversal from the
$66.2 million revenue recorded in the identical interval final yr, as the corporate
confronted vital unrealized losses on its digital asset holdings.
The Abu
Dhabi-based firm, which operates throughout buying and selling, internet hosting , mining and
funding verticals, noticed its income drop by 54.7% to $31.3 million in Q1
2025, in comparison with $68.9 million in Q1 2024, in keeping with its monetary
statements launched this week.
The
substantial decline in profitability was primarily attributed to an unrealized
lack of $142.4 million on digital property held at truthful worth by way of revenue or
loss, contrasting sharply with an unrealized acquire of $73.1 million within the
comparable interval final yr.
Phoenix Group Monetary
Metrics: Q1 2024 vs Q1 2025
Monetary Metric
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