1. Aggressive Expansion and Mining Efficiency
2. Blockchain Partnership: AED-Pegged Stablecoin
3. Diversified Revenue Streams: Mining, Hosting, and Trading

According to a recent report by BHM Capital, Phoenix Group PLC (PHX) is poised for significant growth with an aggressive expansion strategy. The report places a 12-month target price of AED 2.37 per share, suggesting a 48.3% potential upside.

Aggressive Expansion and Mining Efficiency

BHM Capital’s analysis highlights Phoenix Group’s current operation of 750 MW of mining capacity across several key regions, including the MENA, Americas, and CIS countries. The company plans to expand to 1,265 MW by 2025, with 500 MW of that capacity dedicated to the MENA region. By 2026, the company expects to capture 4-5% of global Bitcoin mining capacity. Phoenix’s use of cutting-edge ASIC equipment and its focus on securing low-cost energy sources, especially in regions like Oman and the UAE, positions the company to maintain profitability even in volatile Bitcoin price environments. The report emphasizes the importance of Phoenix’s strategic energy cost advantages, which average USD 5.2 cents per kWh, a competitive edge in the global mining market.

Blockchain Partnership: AED-Pegged Stablecoin

In addition to its mining operations, Phoenix Group has announced a partnership with Tether to launch an AED-pegged stablecoin. This collaboration marks a crucial step in Phoenix’s strategy to diversify its blockchain activities and drive adoption in the UAE’s digital finance ecosystem. The AED-pegged stablecoin aims to provide a secure and transparent option for cross-border transactions, positioning Phoenix as a leader in the growing digital asset market in the MENA region. This partnership is expected to further boost Phoenix’s presence in the region, offering an efficient digital currency alternative that complements its crypto mining and trading activities.

Diversified Revenue Streams: Mining, Hosting, and Trading

The BHM Capital report notes Phoenix’s diversified business model, which includes: * **Self-Mining (55.7%):** This segment is projected to grow to 74% of total revenue by FY27 as Phoenix continues to invest in its high-margin self-mining operations. * **Hosting Services (34.3%):** Phoenix offers hosting services to third parties, ensuring stable revenues through long-term contracts. * **Trading (9.8%):** Phoenix is an exclusive distributor of mining equipment in the MENA region, working with major players like Bitmain and MicroBT. This diversification reduces Phoenix’s exposure to Bitcoin price fluctuations while providing flexibility to optimize revenues across different market cycles.

BHM Capital’s report concludes that Phoenix Group is well-positioned to capitalize on the growing global and regional demand for cryptocurrency mining. With a target price of AED 2.37 per share and substantial growth prospects in the MENA region, Phoenix Group represents a compelling investment opportunity for those looking to gain exposure to the crypto mining industry.