Phoenix
Group, the first UAE-listed Bitcoin (BTC) mining company (ADX: PHX), reported a loss
of $153.6 million for the first quarter of 2025, a stark reversal from the
$66.2 million profit recorded in the same period last year, as the company
faced significant unrealized losses on its digital asset holdings.

The Abu
Dhabi-based company, which operates across trading, hosting , mining and
investment verticals, saw its revenue drop by 54.7% to $31.3 million in Q1
2025, compared to $68.9 million in Q1 2024, according to its financial
statements released this week.

The
substantial decline in profitability was primarily attributed to an unrealized
loss of $142.4 million on digital assets held at fair value through profit or
loss, contrasting sharply with an unrealized gain of $73.1 million in the
comparable period last year.

Phoenix Group Financial
Metrics: Q1 2024 vs Q1 2025

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. Digital assets, which form a
substantial portion of the company’s holdings, saw their value decline to
$300.9 million from $441.5 million over the same period.

The
full-year 2024 report also
showed a 20–30% year-over-year decline in both revenue and profit, despite
mining revenue surging nearly 240% to $107 million. The company stated that net
results would have shown a loss of “only” 7% if not for “multiple one-off
transactions” in Q4 2024. These included costs tied to Phoenix Group’s exit
from the CIS region.

Despite
challenges, the company is focusing on its growth ambitions.

Phoenix Aims for Top 5
Spot Among Bitcoin Miners

Gross
mining margins improved to 30% in Q1 2025, up from 24% in the previous quarter.
Phoenix Group claims it is currently among the world’s top 10 Bitcoin miners
and aims to break into the top five by 2026, both in BTC mining and AI data
center operations.

A key step
toward that goal was the launch of a 20-megawatt site in Texas, which boosted
its total operational capacity to over 500 megawatts across five countries.

“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,” said Munaf Ali, CEO and
Co-Founder.

“The launch
of our Texas facility strengthens our operational base in North America while
reinforcing our industry-leading mining infrastructure and global
diversification strategy.”

Self-Mining Activity Declines

Phoenix
Group’s gross profit fell to $6.3 million in Q1 2025, compared to $23.3 million
in Q1 2024. General and administrative expenses increased to $8.4 million from
$6.1 million year-over-year, further pressuring profitability.

The
company’s mining revenue, generated from its high-performance computing
operations, amounted to $20.7 million in Q1 2025, marginally lower than the
$21.6 million reported in the same period last year.

“Bitcoin’s
average price improved by 12% from $83K in Q4’24 to $94K in Q1’25, but gains
were offset by a 12.5% decrease in mining rewards due to higher network
difficulty,” the company wrote in a statement.

Moreover,
revenue from sales of ASIC machines, wallets, and equipment dropped
significantly to $6.8 million from $27.7 million.

Looking
ahead, the company faces additional challenges. After the reporting date, there
was a significant decline in the market value of certain digital assets held by
the Group. The estimated reduction in value of MMX Token held by the Group is
approximately 85%, equivalent to around $41.9 million, according to a note in
the financial statements.

From Abu Dhabi to Wall
Street

A year ago,
FinanceMagnates.com reported that Phoniex became Abu Dhabi Securities Exchange’s
(ADX) first Bitcoin mining company—a type of business more commonly seen in
markets like the United States. After
raising $370 million in its IPO, the firm later published financial results
showing its revenue had dropped to one-third of the previous year’s total.
Nonetheless, it managed to grow its asset base significantly.

In March,
Phoenix announced that its CEO Ali, had expanded his stake in the company.
Since November 2024, he has purchased over 20 million ordinary shares through
open market transactions.

The move
comes as Phoenix Group explores a
potential listing in the United States and continues to scale its Bitcoin
mining operations in North America.