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Abu Dhabi’s Phoenix Group signs Ethiopian power deal

A wind farm project east of Addis Ababa; Ethiopia’s renewable energy resources make it an attractive location for bitcoin mining operations Tiksa Negeri/Reuters
A wind farm project east of Addis Ababa: Ethiopia’s renewable energy resources make it an attractive location for bitcoin mining operations
  • Power purchase agreement
  • Strategic move into Africa
  • Supports bitcoin mining plan

Abu Dhabi-based technology conglomerate Phoenix Group has acquired an 80 megawatt (MW) power purchase agreement (PPA) in Ethiopia.

It follows just weeks after the company launched a 50MW cryptocurrency mining facility in North Dakota in the US. 

A PPA is usually a long-term electricity supply agreement.

The deal, secured in partnership with UAE cybersecurity company Data7, marks a strategic move into the African market as the group aims to boost its bitcoin mining capacity. 

The Ethiopian site, expected to go live by the second quarter of 2025, will substantially increase Phoenix Group’s “exahash” rate – the measure of computational power used in bitcoin mining. 

According to Munaf Ali, CEO of Phoenix Group, this move solidifies the company’s standing as one of the largest bitcoin miners globally as it prepares for a Nasdaq listing. 

Phoenix Group CEO Munaf Ali said the deal solidifies the company’s standing as one of the largest bitcoin miners in the world

“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.

The Ethiopian PPA also highlights Africa’s growing relevance in the crypto ecosystem. There has been an increased adoption of cryptocurrencies in Africa, driven by economic challenges, limited access to traditional banking, and a youthful, tech-savvy population. 

Ethiopia’s abundant renewable energy resources also make it an attractive location for energy-intensive bitcoin mining operations.

Phoenix Group’s expansion reflects a broader trend of Middle Eastern entities taking bold strides in the cryptocurrency sector. The UAE has positioned itself as a global leader in crypto-friendly regulations and blockchain development, and in late 2024 announced that the Central Bank had approved a dirham-backed stablecoin, AE Coin.

Phoenix’s announcement comes against the backdrop of a crypto market rally. Bitcoin recently hit a record high, fuelled by investor optimism about the pro-crypto policies of the new Trump administration and its impact on digital assets.

There has also been a surge in niche cryptocurrencies such as Trump and Melania memecoins, which have captured public attention but remain volatile.

Eric Trump, son of the newly inaugurated US President Donald Trump, previously highlighted the potential of cryptocurrency to drive economic transformation.

In a 2024 speech at Bitcoin Mena Abu Dhabi, he predicted that bitcoin would hit a $1 million valuation, and described crypto as a “disruptive force that governments and private sectors alike must embrace to remain competitive in a rapidly digitising world”.