UAE Bitcoin Miner Phoenix Group Experiences 43% Income Decline, Highlights Shift Towards Digital Treasury

[ad_1] Phoenix Group, the primary UAE-listed Bitcoin (BTC) mining firm (ADX: PHX), posted a 43% decline in quarterly income in comparison with final 12 months and reported a $29.2 million web loss, even because it expanded its digital asset holdings and maintained worthwhile operations throughout its world amenities.

The corporate reported $29.1 million in income for the three months ended June 30, down from $51.2 million in the identical interval final 12 months. The quarterly web lack of $29.2 million contrasted sharply with a $56.1 million revenue in Q2 2024, highlighting the challenges going through cryptocurrency miners amid unstable digital asset markets.

Phoenix's six-month web loss reached $182.8 million, in comparison with a $122.3 million revenue within the first half of 2024. The losses have been primarily pushed by unrealized losses on digital asset holdings totaling $166.1 million in the course of the first six months of the 12 months.

Nonetheless, Phoenix managed to extend its Bitcoin mining output and set up what it calls the primary formal digital asset treasury amongst firms listed on the Abu Dhabi Securities Change.

Phoenix mined 336 Bitcoin in the course of the second quarter, together with revenue-generating actions that produced $21.1 million in comparison with $28.5 million in Q2 2024. The corporate's self-mining operations generated 214 Bitcoin in the course of the quarter, contributing to a cumulative 689 Bitcoin mined within the first half of 2025 (437 BTC self-mined).

Digital Asset Treasury Takes Form The firm's most notable improvement concerned formalizing a digital asset treasury valued at over $150 million, primarily consisting of Bitcoin and Solana tokens. Phoenix now holds 517 Bitcoin and greater than 610,000 Solana tokens as a part of its long-term reserves, making it the primary ADX-listed entity to undertake such a method.

Munaf Ali, the CEO of Phoenix

“Phoenix has all the time been greater than only a mining firm. We're a conviction-led digital infrastructure group,” stated Munaf Ali, CEO and Co-Founder. “Holding Bitcoin and different strategic digital belongings is not nearly publicity. It is about alignment.”

The treasury technique comes as Phoenix maintains comparatively low debt ranges of $28.1 million in comparison with many rivals within the mining sector. This stability sheet place has enabled the corporate to pursue growth alternatives with out the leverage constraints going through different operators.

Quarterly Efficiency Combined Regardless of income declines, Phoenix reported improved operational metrics in key areas. The corporate achieved a 31% gross margin on self-mining operations and decreased vitality prices by 14% in comparison with earlier intervals. Nonetheless, the quarter included a $29.2 million loss for the three-month interval, largely attributed to digital asset revaluations and accounting changes.

When in comparison with the primary quarter of 2025, Phoenix confirmed modest enchancment. Q1 income totaled $31.3 million, which means the second quarter represented a 7% decline quarter-over-quarter. The corporate's Q1 loss was considerably bigger at $153.6 million, primarily on account of digital asset writedowns throughout that interval.

Tools gross sales and internet hosting companies contributed $8.1 million to Q2 income, down from $22.7 million within the prior 12 months quarter. The decline displays broader trade challenges as mining gear demand fluctuated with Bitcoin worth actions all through 2024 and early 2025.

Key Monetary Information Desk: Phoenix Group Q2 2025 Efficiency Metric

Q2 2025

Q1 2025

Change

Income (USD million)

$29.1

$31.3

-43% vs Q2 2024

Web Loss (USD million)

-$29.2

-$153.6

vs $56.1M revenue Q2 2024

Bitcoin Mined (BTC)

336

353

-4.8% QoQ

Self-Mining Income

$21.1M

$20.7M

-26% vs Q2 2024

Self-Mining Gross Margin

31%

N/A

Robust operational effectivity

Vitality Price Discount

14%

N/A

Vital price optimization

Digital Asset Treasury

$150M+

$300.9M

First ADX-listed treasury

Whole Debt

$28.1M

$60.0M

Low leverage vs friends

Inventory Efficiency (Q2)

+72%

N/A

High 5 ADX performer

EBITDA (Adjusted)

$0.38M

-$1.3M

Operational enchancment

Tools Gross sales

$8.1M

$6.8M

Market softness

Internet hosting Income

$4.4M

$3.8M

Service diversification

Share Efficiency and Market Place Phoenix's inventory worth rose 72% between April and June, making it some of the actively traded securities on the Abu Dhabi trade. The rally prolonged into July, with the corporate reporting a 110% improve since early April.

The current features have coincided with a broader surge in cryptocurrencies and a brand new all-time excessive for Bitcoin above $120,000, highlighting the direct correlation between Phoenix's valuation, like that of different Bitcoin miners, and momentum in digital belongings.

The value improve helped Phoenix shed its penny-stock standing, with shares buying and selling at AED 1.49 on Thursday after a 3.25% drop. Regardless of the current appreciation, the inventory stays down greater than 40% from its post-IPO peak.

Phoenix Group share worth. Supply: Tradingview.com

The corporate can be exploring a possible itemizing in the USA and continues to scale its Bitcoin mining operations in North America.

AI Infrastructure Growth Wanting past conventional cryptocurrency mining, Phoenix is conducting feasibility research to transform parts of its U.S. infrastructure for synthetic intelligence and high-performance computing purposes. The corporate targets constructing 1 gigawatt of hybrid infrastructure by 2027.

“We see strategic alternatives to consolidate underutilized infrastructure globally,” Ali defined. “Many smaller operators are caught with land and energy they can not convert into significant compute.”

Phoenix maintains its place as the biggest Bitcoin miner within the Center East and North Africa area, although world competitors has intensified.

Phoenix Group, the primary UAE-listed Bitcoin (BTC) mining firm (ADX: PHX), posted a 43% decline in quarterly income in comparison with final 12 months and reported a $29.2 million web loss, even because it expanded its digital asset holdings and maintained worthwhile operations throughout its world amenities.