Phoenix Group

1. Company Overview & Earnings Context

Phoenix Group delivered a stronger H1 2026 performance as it continued its strategic transition toward higher-margin self-mining and AI infrastructure. Although revenue declined due to reduced trading activity and softer Bitcoin market conditions, the Group significantly reduced its net loss while strengthening its position through operational improvements, investment gains, and expansion of its AI data centre platform.

During the period, Phoenix advanced its AI and High-Performance Computing (AI/HPC) strategy, expanded self-mining capacity in Texas, and achieved key milestones for its first AI-ready data centre project in Lyon, France.

2. Financial Performance Snapshot

• Revenue: USD 42.3M (-29.9% YoY)

• Other income: USD 2.3M (+51.4% YoY)

• Adjusted EBITDA: USD 1.0M (vs loss of USD 1.3M)

• Operating loss: USD 27.0M (vs USD 19.1M)

• Loss before tax: USD 88.1M (improved from USD 181.9M)

• Income tax expense: USD 3.0M

• Net loss: USD 91.0M (improved from USD 182.8M)

• Loss per share: USD 0.015 (vs USD 0.030)

Compared with H1 2025:

• Revenue declined from USD 60.4M to USD 42.3M

• Net loss narrowed from USD 182.8M to USD 91.0M

• Adjusted EBITDA turned positive from a loss in the prior year

• Loss per share improved from USD 0.030 to USD 0.015

3. Operational Highlights & Key Metrics

• Total assets: USD 592.7M

• Total equity: USD 542.0M

• Total digital assets: USD 197.5M

• Cash & bank balances: USD 11.7M

• Self-mining revenue: USD 14.7M

• Hosting revenue: USD 4.3M

• Phoenix mined 354.8 BTC during Q2 2026, including 239.9 BTC from self-mining

• Self-mining gross margin: 43%

• Mining efficiency improved to 18.81 J/TH

• Overall network hash rate contribution: 1.4%

• Successfully energized a new 38MW self-mining facility in Texas

• Project Lyon reached key development milestones, with grid connection secured and construction expected to commence in Q3 2026

• Strategic 13.5% investment in Bitzero increased in value following its NASDAQ listing to approximately USD 56M

4. Key Performance Drivers

Phoenix's results reflected its strategic shift away from lower-margin trading activities toward higher-margin self-mining operations. Improved mining efficiency, stable self-mining margins, optimized power management, and lower Bitcoin network competition supported stronger operating performance. The Group also benefited from gains in its investment portfolio and continued progress in its AI infrastructure strategy, while impairment charges, depreciation, and lower revenue from trading activities continued to weigh on reported earnings.

5. Outlook & Forward Guidance

Management remains focused on expanding its AI and High-Performance Computing infrastructure alongside its digital asset operations. Construction of the Lyon AI-ready data centre is expected to begin in Q3 2026, representing the first phase of Phoenix's broader European and GCC AI infrastructure strategy. The Group also expects continued benefits from higher mining efficiency, disciplined capital allocation, and growing demand for AI infrastructure while leveraging its expertise in energy-intensive computing.

6. Investor Takeaway

Phoenix Group continued making meaningful progress during H1 2026 as it accelerated its transformation from a traditional digital asset miner into a broader AI infrastructure and high-performance computing platform. While revenue declined following the strategic reduction of lower-margin trading activities, improved mining efficiency, stronger investment performance, and continued expansion of its AI data centre business contributed to a significantly lower net loss. With new mining capacity, growing AI infrastructure investments, and improving operational efficiency, Phoenix is positioning itself for long-term growth beyond cryptocurrency mining.