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PHOENIX GROUP PLC Management Reports 2026
66581_rns_2026-05-12_90715b0a-8321-40e6-9186-d7b25b233966.pdf
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PHOENIX
Management Discussion & Analysis
Q1, 2026
Q1' 2026
MANAGEMENT
DISCUSSION & ANALYSIS
PHOENIX
NAME OF THE LISTED COMPANY
THE PERIOD OF THE FINANCIAL STATEMENTS COVERED BY THE REPORT
OVERVIEW OF THE RESULTS DURING THE FINANCIAL PERIOD
PHOENIX GROUP PLC
First Quarter / Q1' 2026
Phoenix Group PLC (ADX: PHX) is pleased to announce its Q1' 2026 results with the following highlights.
Key Highlights:
- In a significant post balance sheet event, Phoenix Group announced a strategic partnership with DC Max Group S.À R.L. to develop its first European AI data center, comprising an 18 MW facility located in Lyon, France. The project represents the inaugural deployment under the Group’s European Data Centre Platform, a scalable infrastructure framework targeting the development of over 1 GW of combined AI/HPC data center capacity across Europe and the GCC region. The agreement is signed subsequent to the period ending Mar 31, 2026.
- Positive adjusted EBITDA of $1.2M in Q1'26, compared to a $1.7m loss in Q1'25, driven by the company’s continued shift toward self-mining and operational efficiency optimization.
- Self-mining gross margin remained strong at 42% despite challenging market conditions, supported by optimized power strategies and flexible energy arrangements across key operating sites.
- Mining efficiency improved further to 19.53 J/TH in Q1'26, down 5% from 20.54 J/TH in Q4'25, reflecting ongoing enhancements in fleet performance and infrastructure optimization.
- Revenue for Q1'26 stood at $23M, down 8% QoQ, mainly due to a 23% decline in average Bitcoin prices from $100K to $76K, which impacted self-mining revenue. The impact was partially offset by an 8% increase in hash rate from 15.9 EH/s to 17.2 EH/s.
- Average power cost improved to $0.046/kWh in Q1'26 from $0.049/kWh in Q4'25, reflecting continued optimization in power procurement and operational efficiency.
https://www.phoenixgroupuae.com
Q1' 2026
MANAGEMENT
DISCUSSION & ANALYSIS
PHOENIX
OVERVIEW OF THE RESULTS DURING THE FINANCIAL PERIOD
Key Highlights
- Phoenix mined 406.5 BTC in Q1'26, up from 351.7 BTC in Q4'25, including 284.2 BTC from self-mining, supported by higher utilization rates and expanded operating capacity.
- Total opex declined 5% YoY to $8.6M from $9.0M in Q1'25, reflecting ongoing cost optimization initiatives and continued operational efficiency efforts.
- The Company reported a net loss of $81M in Q1'26, mainly driven by unrealized losses on digital and financial assets, alongside non-cash impairment and depreciation charges. The loss is primarily driven by losses on investment portfolio of $48.1M, and a total non-cash impairment and depreciation charge of $30.8M.
- The company recorded a $48M loss on its investment portfolio, primarily driven by a $21M loss on Solana as the token price declined 33% from $124 to $83.
https://www.phoenixgroupuae.com
Q1' 2026
MANAGEMENT
DISCUSSION & ANALYSIS
PHOENIX
SUMMARY OF PROFIT AND LOSS DURING THE PERIOD
| All numbers in USD | Q1'26 | Q1'25 | Q4'25 | Y/Y | Q/Q |
|---|---|---|---|---|---|
| Gross Revenue | 23,308,501 | 31,259,736 | 25,415,535 | -25% | -8% |
| Self-Mining | 19,007,628 | 20,673,355 | 20,027,056 | -8% | -5% |
| Hosting | 4,299,073 | 3,788,830 | 4,964,236 | 13% | -13% |
| Trading | 1,800 | 6,797,551 | 424,243 | -100% | -100% |
| Gross Margin | 38% | 20% | 39% | 17.8 pp | -2 pp |
| Self-Mining | 42% | 30% | 42% | 11.9 pp | 1 pp |
| Hosting | 21% | -9% | 24% | 29.1 pp | -4 pp |
| Trading | 8% | 6% | 90% | 1.3 pp | -83 pp |
| Hash Rate Avg (EH/s) | 17.2 | 14.2 | 15.9 | 21% | 8% |
| Contribution in Global Hash Rate | 1.7% | 1.7% | 1.5% | -0.1 pp | 0.3 pp |
SUMMARY OF FINANCIAL POSITION AT THE END OF THE FINANCIAL PERIOD
Total Digital Assets: USD 228.1M
Total Assets: USD 609M
Total Equity: USD 552.3M
OPERATIONAL METRICS FOR THE FINANCIAL PERIOD
Overall Business
BTC Mining Per Day: 4.52
Hashing Share in the Network: 1.7%
Mining Efficiency: 23.8 MW /EHs
Current Power Consumption: ~408 MW
Power Cost Per KWH: 4.6 cent
Business Verticals
- Self Mining
- Hash Rate: 7.04 EHs
- Hashing Share in the Network: 0.71%
- BTC Mined Per Day: 3.16
- Power Consumption: ~137.5 MW
-
Mining Efficiency: 19.53 MW / EHs
-
Hosting
- Hash Rate: 1.78 EHs
- Hashing Share in the Network: 0.18%
- BTC Mined Per Day: 0.8
- Power Consumption: ~30.72 MW
-
Mining Efficiency: 17.26 MW / EHs
-
JV Investments
- Hash Rate: 8.35 EHs
- Hashing Share in the Network: 0.84%
- BTC Share Per Day: 0.56
- Power Consumption: ~241MW
(Incl. CITADEL & Others)
https://www.phoenixgroupuae.com
Q1' 2026
MANAGEMENT
DISCUSSION & ANALYSIS
PHOENIX
SUMMARY OF OPTIMIZATION INITIATIVES
Self-Mining Gross Margin remained strong at 41.8% in Q1'26, broadly stable compared to 41.6% in Q4'25 despite continued volatility and competitive conditions across the bitcoin mining market.
Self Mining Gross Margin
This has been achieved with:
- Mining Efficiency improved from 20.6 J/TH in Q4'25 to 19.53 J/TH in Q1'26.
Mining Efficiency (J/TH)
https://www.phoenixgroupuae.com
Q1' 2026
MANAGEMENT
DISCUSSION & ANALYSIS
PHOENIX
SUMMARY OF OPTIMIZATION INITIATIVES
Average power cost improved from $0.049/kWh in Q4'25 to $0.046/kWh in Q1'26.
Avg Power Price ($/Kwh)
Ongoing optimization initiatives continue to enhance operational efficiency, driving Cost per PH/day even lower and reinforcing the company's competitive position while supporting sustained long-term value creation.
https://www.phoenixgroupuae.com
Q1' 2026
MANAGEMENT
DISCUSSION & ANALYSIS
PHOENIX
PROJECT HIGHLIGHTS: LYON, FRANCE
- In a significant post balance sheet event, Phoenix Group announced a strategic partnership with DC Max Group S.À R.L. to develop its first European AI data center, comprising an 18 MW facility located in Lyon, France. The project represents the inaugural deployment under the Group’s European Data Centre Platform, a scalable infrastructure framework targeting the development of over 1 GW of combined AI/HPC data center capacity across Europe and the GCC region. The agreement is signed subsequent to the period ending Mar 31, 2026.
- Designed for hyperscale and enterprise customers, the platform is structured around long-term, contracted infrastructure revenue, aligning with the shift toward stable, compute-driven income streams.
- Importantly, Lyon is not a standalone asset; it is first step in a multi-site rollout, with additional projects under evaluation and development, positioning the Company to scale AI capacity across Europe.
THE DEVELOPMENTS OF THE IMPLEMENTATION OF PROJECTS, PLANS AND TRANSACTIONS AND DEALS THAT WERE DISCUSSED BY THE COMPANY’S BOARD OF DIRECTORS IN THE REPORT FOR THE PREVIOUS FISCAL YEAR
The company’s board of directors noted the progress in implementation of the company’s strategy and continued efforts for good corporate governance and have demonstrated their support through several board meetings held during the period.
https://www.phoenixgroupuae.com
Q1' 2026
MANAGEMENT
DISCUSSION & ANALYSIS
PHOENIX
FUTURE PLANS FOR GROWTH AND CHANGES IN OPERATIONS IN FUTURE PERIODS –
PHOENIX'S AI DATA CENTER PLATFORM
Phoenix is expanding into AI and HPC infrastructure, building on its core strength in power and large-scale compute, marking a natural evolution of its existing platform.
STRATEGIC PARTNERSHIP STRUCTURE
A scalable platform designed to deliver high-quality, long-term AI infrastructure assets across Europe.
INITIAL CAPACITY 18 MW
AI-ready facility in Lyon
PIPELINE OPPORTUNITIES 1 GW+
Across France
POWER MIX >90%
Low-carbon electricity
MODEL REPEATABLE
High-quality expansion platform
BUILDING THE FUTURE OF AI INFRASTRUCTURE - PHOENIX'S NEXT STAGE OF EVOLUTION
Phoenix is uniquely positioned at the intersection of energy, compute and capital to deliver and scale next-generation AI infrastructure across Europe and beyond.
Our focus is on securing power, advancing permits, and executing at speed to achieve energization and deliver long-term value.
https://www.phoenixgroupuae.com
Q1' 2026
MANAGEMENT
DISCUSSION & ANALYSIS
PHOENIX
DISCLAIMER
This document contains forward-looking statements, which involve both known and unknown risks and uncertainties, many of which are beyond Phoenix's control. These statements are based on Phoenix's current beliefs and expectations regarding future events and may include terms such as "expects," "may," "will," "could," "should," "intends," "plans," "predicts," "continues," "assumes," "targets," and similar expressions.
Forward-looking statements cover matters beyond historical facts, appearing throughout this document to reflect Phoenix's expectations regarding financial performance, business strategy, growth prospects, and industry trends. Specifically, statements related to risk factors, strategic objectives, and other future developments may be categorized as forward-looking.
Actual results may differ materially due to various risks and uncertainties. Consequently, no assurance can be given that projected outcomes will be realized, as unforeseen circumstances could influence future performance. These statements are made as of the date of this document, and Phoenix expressly disclaims any obligation to update them unless required by applicable laws and regulations. Accordingly, readers should not place undue reliance on the forward-looking statements included herein. Additionally, references to agreements or other documents are summaries and should be considered selective and incomplete.
https://www.phoenixgroupuae.com
PHOENIX
Q1' 2026
MANAGEMENT
DISCUSSION & ANALYSIS
FOR FURTHER DETAILS, PLEASE FEEL FREE TO REACH OUT TO US AT
Soheib Ghizali — Head of Investor Relations
Contact
+971 4 323 9120
Email
[email protected]
Abu Dhabi, United Arab Emirates
Contact
+971 4 323 9120
Address
3412, 34 Floor, Al Maqam Tower, Regus Adgm Square, Al Maryah Island, Abu Dhabi, UAE
Dubai, United Arab Emirates
Contact
+971 4 323 9120
Address
Office 2901, Floor 29, Boulevard Plaza Tower 2, Burj Khalifa District, Downtown, Dubai, UAE
https://www.phoenixgroupuae.com