Phoenix Group, the first UAE-listed Bitcoin (BTC) mining company (ADX: PHX), reported a loss of $153.6 million for the first quarter of 2025, a stark reversal from the $66.2 million profit recorded in the same period last year, as the company faced significant unrealized losses on its digital asset holdings.

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

The Abu Dhabi-based company, which operates across trading, hosting Hosting Hosting refers to the location of a broker’s technology stack. This is one of the most crucial elements of a brokerage that helps prevent the company from losing money due to being unable to mitigate latency risks.Brokers or exchanges are traditionally very vulnerable to latency arbitrage due to the speed with which financial markets move. The traditional datacenter locations for forex brokers are all centered at Equinix facilities around the globe. What Are the World’s Foremost Data Centers?Sin Hosting refers to the location of a broker’s technology stack. This is one of the most crucial elements of a brokerage that helps prevent the company from losing money due to being unable to mitigate latency risks.Brokers or exchanges are traditionally very vulnerable to latency arbitrage due to the speed with which financial markets move. The traditional datacenter locations for forex brokers are all centered at Equinix facilities around the globe. What Are the World’s Foremost Data Centers?Sin Read this Term, 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

The company's total assets decreased to $810.4 million as of March 31, 2025, down from $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 Bitcoin While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that While some may still be wondering what is Bitcoin, who created Bitcoin, or how does Bitcoin work, one thing is certain: Bitcoin has changed the world.No one can remain indifferent to this revolutionary, decentralized, digital asset nor to its blockchain technology.In fact, we’ve gone a long way ever since a Florida resident Laszlo Hanyecz made BTC’s first official commercial transaction with a real company by trading 10,000 Bitcoins for 2 pizzas at his local Papa John’s.One could now argue that Read this Term 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,” he added.

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.

“Bitcoin’s average price improved by 12% from $83K in Q4'24 to $94K in Q1'25, but gains were offset by a 12.5% decrease in mining rewards due to higher network difficulty,” the company wrote in a statement.

Moreover, revenue from sales of ASIC machines, wallets, and equipment dropped significantly to $6.8 million from $27.7 million.

Looking ahead, the company faces additional challenges. After the reporting date, there was a significant decline in the market value of certain digital assets held by the Group. The estimated reduction in value of MMX Token held by the Group is approximately 85%, equivalent to around $41.9 million, according to a note in the financial statements.

From Abu Dhabi to Wall Street

A year ago, FinanceMagnates.com reported that Phoenix became Abu Dhabi Securities Exchange’s (ADX) first Bitcoin mining company—a type of business more commonly seen in markets like the United States. After raising $370 million in its IPO, the firm later published financial results showing its revenue had dropped to one-third of the previous year’s total. Nonetheless, it managed to grow its asset base significantly.

In March, Phoenix announced that its CEO Ali, had expanded his stake in the company. Since November 2024, he has purchased over 20 million ordinary shares through open market transactions.

The move comes as Phoenix Group explores a potential listing in the United States and continues to scale its Bitcoin mining operations in North America.