UAE Phoenix Group narrows loss for Q2 to $10 million

UAE based Phoenix Group PLC (ADX: PHX), an IHC portfolio company and global digital infrastructure operator, shared its financial and operational results for the second quarter ended 30 June 2026, which showed that gross revenue for Q2 2026 was $19.0 million, down from $23.3 million in Q1 2026 and $29.1 million in Q2 2025. For the six months ended 30 June 2026, gross revenue totaled $42.3 million.

Comprehensive loss narrowed to $10.0 million for the quarter, down 87.7% quarter-on-quarter from $81.2 million in Q1 2026, a quarter that included one-off unrealised losses on digital assets, and down 46.4% year-on-year from $18.7 million in Q2 2025. The improvement was primarily driven by the recovery in investment portfolio performance described above. Adjusted EBITDA for the quarter was modestly negative, reflecting softer Bitcoin market conditions during the period.

The company noted that this reflected its continued shift of capital and capacity away from lower-margin trading activity toward self-mining, alongside softer Bitcoin market conditions during the quarter.

Total assets stood at $592.6 million at quarter-end, with total equity of $541.9 million.

As per the announcement, mining efficiency continued to improve, with fleet performance reaching 18.81 J/TH, down from 19.53 J/TH in Q1 2026, underscoring the Company’s continued focus on fleet optimisation and infrastructure upgrades. Average power costs across the portfolio were $0.047 per kWh in Q2 2026, down from $0.052 per kWh in Q2 2025, though up modestly from $0.046 per kWh in Q1 2026.

Self-mining gross margin reached 43% during the quarter, extending a sustained multi-quarter improvement supported by fleet efficiency gains and stable power procurement.

During the quarter, Phoenix energized its newest self-mining facility in Texas, adding up to 38 MW of capacity equipped with the latest-generation S21 hydro miners. The site is expected to reach full energization in Q3 2026, further expanding Phoenix’s self-mining hash rate capacity.

Bitzero Holdings Inc., in which Phoenix holds an approximate 13% stake, generated a $31 million gain during the quarter, following developments in Bitzero’s public listing on the NASDAQ.

Additionally, combined with movements across the Company’s broader digital-asset holdings, the investment portfolio generated a net gain of $9.7 million for the quarter.

Munaf Ali, Co-Founder and CEO of Phoenix Group, commented, “Our operations delivered disciplined margins again this quarter, even as broader market conditions softened, and that discipline is what’s funding the next phase of our strategy. The efficiency gains we’ve built over the past two years are now core to how we run the business, and they give us the flexibility to invest in AI infrastructure without compromising performance elsewhere.”

As announced in May 2026, Phoenix is developing its first AI-ready data centre in Lyon, France, in partnership with DC Max, an experienced European data centre developer, with an initial capacity of 18MW. During Q2 2026, Phoenix completed the acquisition of the Lyon site, with construction of the first phase scheduled to begin in Q3 2026 and operational delivery targeted for the fourth quarter of 2027, marking the project’s transition from planning to physical construction.

“Construction beginning this coming quarter in Lyon is proof that our transition from bitcoin mining infrastructure to AI infrastructure is moving from plan to delivery,” Ali added. “We expect to share further updates on our European and GCC pipeline as the year progresses.”

At the end of 2025, Phoenix Group, announced that it had sold 100 BTC (Bitcoin) equivalent to approximately $110 million, out of its 782 BTC in holding to fuel fund growth and expansion activities.