Abu Dhabi-listed Phoenix Group has launched a new 25-megawatt cryptocurrency mining facility in Willamette, South Carolina.
The new mining operation boosts the company’s global mining capacity to 18 exahash, according to a recent report from Zawya.
“The Willamette site enables us to deploy upgrades to our proprietary mining technology and optimize miner allocation for greater efficiency,” Seyed Mohammad Alizadehfard (Bijan), Co-Founder and Group CEO of Phoenix Group, said.
Phoenix Group Aims Global Expansion
The launch of the Willamette site marks Phoenix Group’s expansion to ten mining facilities across the US, Canada, CIS, and the UAE.
Each facility is dedicated to one of four core verticals, including mining, hosting, trading, and investments.
Alizadehfard emphasized that this development prepares Phoenix Group for future demands in the blockchain space, ensuring the company remains agile and well-positioned for technological advancements and market growth.
Earlier this year, Phoenix Group said it saw a 50% growth in net income and a “substantial increase” in year-on-year sales following its initial public offering (IPO) on the Abu Dhabi Stock Exchange.
It said sales experienced a surge of 20% year-on-year.
The Phoenix soars in 2023!
Phoenix published it’s earnings report boasting an increase of 50% in net earnings.
Stay tuned for even more impressive results in 2024
Check it out here:https://t.co/WFc7JhgczH pic.twitter.com/bbJac3RMuq
— Phoenix Group (@phoenixgroupuae) February 15, 2024
Furthermore, the firm’s core hosting business saw year-on-year growth of 119% and its self-mining businesses experienced year-on-year growth of 480%.
In January, Phoenix Group announced it had successfully acquired mining equipment valued at $187 million from Bitmain Development PTI Limited.
Phoenix Computer Equipment, a subsidiary of Phoenix Group, disclosed that the acquisition agreement was facilitated through Cypher Capital DMCC.
In December, Phoenix Group disclosed its partnership with Whatsminer.
The agreement involved a $380-million deal to procure hydro cooling hardware equipment, which utilizes a closed-loop water system that preserves water volume and quality within pipes, enhancing heat transfer efficiency.
In another related news, HIVE Digital Technologies announced plans to construct a 100-megawatt Bitcoin mining facility in Paraguay, marking its first venture into the country.
The move is expected to more than double the company’s mining hashrate, with the new site projected to increase its capacity from 5.6 exahashes per second to 12.1 EH/s upon completion.
Bitcoin Miners Face ‘Capitulation’
It is worth noting that Bitcoin miners are facing a critical phase known as “capitulation” as their profits diminish amidst the recent sell-off in the Bitcoin market.
Miner capitulation occurs when miners reduce their operations or sell a portion of their mined Bitcoin and reserves to sustain their operations, earn yield, or hedge their Bitcoin exposure.
One significant indicator of capitulation is the decline in Bitcoin’s hashrate, which represents the total computational power securing the Bitcoin network.
The hashrate has experienced a substantial 7.7% decrease, hitting a four-month low of 576 EH/s after reaching a record high on April 27.
The similarity between this decline and the post-FTX collapse conditions in December 2022 suggests a potential market bottom.
Furthermore, miners have been significantly underpaid during this period, as indicated by the miner profit/loss sustainability indicator.
Their daily revenues have declined by 63% since the halving, where both Bitcoin’s base block rewards and transaction fee revenue were higher.
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