DUBAI (Reuters) – Abu Dhabi-listed cryptomining and blockchain conglomerate Phoenix Group has struck an 80-megawatt (MW) power purchase agreement (PPA) in Ethiopia, it said on Wednesday, as it pursues a global diversification strategy by entering the Africa market.
Under the deal, Ethiopian Electric Power (EEP) will provide the energy needed to support Phoenix’s bitcoin mining expansion, with supplies due to start in the second quarter.
The firm did not provide details on the location of the facility or the size of the deal, which was signed in partnership with Abu Dhabi cybersecurity firm Data7, it said in a statement.
“We are aggressively building out our mining capabilities,” Phoenix CEO Munaf Ali said, adding the additional capacity would fuel further growth as the company prepares for a dual-listing on Nasdaq.
The company “is actively engaged in discussions with financial institutions and NASDAQ to evaluate the most effective way forward”, it said in a separate statement to Reuters, without providing a timeline for the listing.
Phoenix, which counts Abu Dhabi’s largest listed firm IHC among its shareholders, operates multiple mining facilities in countries including the UAE, the U.S. and Canada.
IHC, which is chaired by Sheikh Tahnoon bin Zayed Al Nahyan, the UAE’s national security adviser and a brother of UAE President Sheikh Mohammed bin Zayed, has a sprawling portfolio of investments that ranges from agriculture to energy and includes a cryptomining firm.
In Africa, Phoenix is exploring more opportunities in Ethiopia, and assessing other regions “with strong energy prospects,” it said in the statement to Reuters.
It is also exploring opportunities to enter the South American market and looking at Brazil, it added.
(Reporting by Federico Maccioni. Editing by Mark Potter)
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