Abu Dhabi-based Phoenix Group, a leading cryptomining and blockchain conglomerate, has announced its expansion into Africa with an 80-megawatt (MW) power purchase agreement (PPA) in Ethiopia.
The deal, unveiled on Wednesday, marks a significant step in the company’s global diversification strategy.
Phoenix, in a statement announcing its expansionist plans into the East African nation, said the deal was forged in partnership with Abu Dhabi-based cybersecurity firm Data 7.
According to the agreement, Ethiopian Electric Power (EEP) will provide the electricity required to power Phoenix’s bitcoin mining operations, with supply expected to commence in the second quarter of the year.
Reza Nejatian, Phoenix Group’s CEO of Global Mining Operations said that Ethiopia’s emergence as a key cryptomining hub provides the perfect platform for the company’s expansion.
Looking ahead
Munaf Ali, CEO of Phoenix Group, has said this move solidifies the company’s standing as one of the largest bitcoin miners globally as it prepares for a Nasdaq listing.
“We’re not just expanding our operations; we’re strategically positioning ourselves at the forefront of a financial revolution where cryptocurrencies will play a central role in creating a more inclusive and dynamic global economy,” Ali said.
The Ethiopia project is part of a broader strategy, with Phoenix planning further capacity increases in Africa and entry into the South American market later this year.
Great news for Ethiopia
Ethiopia is leading Africa’s geothermal development, accounting for nearly 90% of the continent’s capacity along with Kenya. With its growing electricity might, it was a good choice for a cryptomining hub powered by 80MW of electricity.
The PPA agreement with Ethiopia also highlights Africa’s growing importance in the global crypto ecosystem.
Ethiopia has emerged as a key player, positioning itself at the forefront of the continent’s expanding influence in the sector.
