Phoenix Group Plunges into $153M Loss as Digital Assets Crumble

The first UAE-listed Bitcoin (BTC) mining company, Phoenix Group (ADX: PHX), reported a first-quarter loss of $153.6 million, a stark reversal from the $66.2 million profit in Q1 2024, 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

Financial Metric

Q1 2024

Q1 2025

Change

% Change

Revenue

$68.9M

$31.3M

-$37.6M

-54.7%

Gross Profit

$23.3M

$6.3M

-$17.0M

-73.0%

Net Income/(Loss)

$66.2M

-$153.6M

-$219.8M

-332.0%

Digital Assets Value

$273.2M

$300.9M

+$27.7M

+10.1%

Unrealized Gain/(Loss) on Digital Assets

$73.1M

-$142.4M

-$215.5M

-295.0%

Mining Revenue

$21.6M

$20.7M

-$0.9M

-4.2%

Trading Revenue (ASIC sales, etc.)

$27.7M

$6.8M

-$20.9M

-75.5%

The company's total assets decreased to $810.4 million as of March 31, 2025, compared to $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.