By: AGBI

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.

“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.