UAE-based tech and Web3 powerhouse, Phoenix Group PLC, announced a significant 141% year-on-year rise in net profit for Q2 2024, reaching USD 56.1 million, compared to USD 23.2 million in the same period last year. On Friday, This growth was primarily driven by strategic investments in digital assets and the expansion of their self-mining business.
The company’s total assets surged by 188% year-over-year, climbing to USD 919.6 million from USD 319.8 million, with a 4.6% quarter-over-quarter growth. However, overall revenue experienced a 35% year-on-year decline, amounting to USD 51 million, due to global macroeconomic challenges related to the bitcoin halving event.
Phoenix Group’s self-mining business saw a 32% growth in Q2 2024, generating USD 28.5 million. This increase underscores the company’s successful focus on self-mining and digital asset investments despite the challenging market conditions affecting hosting revenue, which declined by 10% quarter-over-quarter.
“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 of Phoenix Group.
Co-founder and Group Managing Director Munaf Ali noted that the impressive net profit growth reflects Phoenix Group’s strategic expansion beyond its core business. The company’s plans include leveraging the Web3 ecosystem and token economics to ensure sustained growth and resilience.
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