Summary:
Phoenix Group reports a 236% surge in mining revenue to $107 million.
Overall revenue declines by 30%, from $288.2 million to $205.7 million.
Net profit drops from $207.8 million to $167.4 million.
Stock price has plummeted 60%, nearing penny stock territory at AED 1.01 ($0.27).
The company plans expansion with new facilities in Ethiopia and Texas.
Phoenix Group, recognized as the first UAE-listed cryptocurrency mining company, has recently unveiled its 2024 financial results, showcasing a mixed performance. Despite a remarkable 236% surge in mining revenue, reaching $107 million, the company's overall revenue experienced a 30% decline, dropping from $288.2 million in 2023 to $205.7 million. The net profit attributable to shareholders also fell from $207.8 million to $167.4 million, leading to a decrease in earnings per share from $0.040 to $0.028.
UAE Bitcoin Miner Sees Mixed Results
While the mining revenue growth is commendable, the decline in total revenue indicates underlying challenges. The CEO, Munaf Ali, expressed optimism about the company's strategic expansion, stating, "The past year has been pivotal for Phoenix Group, marked by significant expansion and enhanced profitability." However, the financial statements reveal that EBITDA has decreased from $208.6 million to $190.7 million.
$370M IPO
A year prior, Finance Magnates reported the Abu Dhabi stock market's welcoming of its first publicly listed Bitcoin mining company. Following a successful IPO that raised $370 million, the company saw a threefold decrease in revenue compared to the previous year, despite significant asset growth.
Almost a Penny Stock
The company’s stock has faced severe challenges since its late 2023 debut on the Abu Dhabi Exchange. Shares have plummeted 60% from their all-time high, now trading at AED 1.01 ($0.27), edging dangerously close to penny stock territory. The fourth quarter did reveal some operational improvements, with self-mining gross margins expanding to 24% from 5% in the previous quarter, aided by Bitcoin's price appreciation.
Looking ahead, Phoenix Group has secured agreements for additional facilities in Ethiopia and Texas, while diversifying into various cryptocurrencies and partnering with the Tether Foundation for a dirham-backed stablecoin initiative.
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