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ABU DHABI, UAE – Phoenix Group PLC (ADX:PHX), the UAE’s multi-billion-dollar tech and Web3 powerhouse listed on the Abu Dhabi Securities Exchange, today announced its second quarter performance. Reporting a 141% year-on-year increase in net profit, reaching USD 56.1 million, up from USD 23.2 million in Q2 2023, the growth has been largely fuelled by strategic investments in digital assets.
Key financial highlights:
- Total assets surged by 188% year-over-year in H1 OF 2024, soaring to $919.6 million from $319.8 million.
- The quarter-over-quarter growth in total assets stands at 4.6%.
- Net profit saw a robust 141% year-over-year rise, amounting to $56.1 million in Q2, 2024.
- Self-mining business grew by 32% to reach $28.5 million in Q2, 2024 as compared to USD 21.6 million in Q1, 2024.
- Overall revenue reached $51 million experiencing a 35% year-over-year decline in Q2, 2024, reflecting short term global macro challenges around bitcoin halving.
- The earnings per share for Q2 2024 amounted to $0.009.
Phoenix Group's total asset increase demonstrates the company's strong financial position and effective asset management strategies. Moreover the publicly listed company’s quarter-over-quarter growth in total assets highlighted consistent upward momentum.
The year-on-year net profit showcases the company's ability to generate substantial returns even amidst challenging market conditions. As a key driver of this growth, the self-mining business generated $28.5 million in Q2 2024, marking a 32% increase from USD 21.6 million in Q1 2024.
Overall reported revenue reached $51 million representing a 35% year-on-year decline and reflects wider drivers such as the bitcoin halving event which had a major impact on global markets. Despite this, Phoenix Group's strategic focus on self-mining and digital asset investments ensured a positive overall performance. The self-mining sector achieved a 32% quarter-on-quarter and a 295% year-on-year increase, bolstered by the operationalization of new sites in the US and Oman.
Phoenix Group's hosting revenue saw a 10% quarter-over-quarter decline as customers opted to shut down machines due to unfavourable mining economics and rising electricity costs. However, the company's overall financial health remains strong, with total assets experiencing substantial growth. The earnings per share for Q2 2024 amounted to $0.009, underscoring the company's profitability and shareholder value.
“Our strategy to diversify our business portfolio while maintaining our expertise and leadership position in mining and management of digital assets, including expanding our operational sites has proven to be a resilient and healthy strategy that positions us well for continued growth,” said Seyed Mohammad Alizadehfard (Bijan), Co-Founder and Group CEO of Phoenix Group. Our expertise and knowledge in the Web3 and blockchain ecosystem will continue to unlock additional revenue and growth potential in months and years ahead.”
Munaf Ali, Co-Founder and Group Managing Director of the Phoenix Group said “The significant growth in our net profit reflects our strategic decision to expand beyond our core business and positions Phoenix Group well to capitalise on growth and development opportunities going forward. While we will continue to focus and refine our core businesses, our ability to source additional revenue streams from the Web3 ecosystem and token economics gives our future growth a resilience that will be vigorously maintained.”
About Phoenix Group:
Phoenix Group, a multi-billion-dollar tech and Web3 powerhouse headquartered in the UAE, leads the forefront of the blockchain, crypto, and tech revolution, driving innovation to new heights. In 2017, Bijan Alizadeh Fard and Munaf Ali laid the foundation for what would evolve into the Phoenix Group – a conglomerate comprising several thriving businesses. Beyond the Web3 sphere, they offer comprehensive solutions, boast a 765MW mining operation, and fuel growth through strategic partnerships and innovation.
Phoenix Group PLC is the region's first crypto and blockchain conglomerate to be listed on the Abu Dhabi Securities Exchange. It also runs the largest mining farm in the MENA region.