A crypto company went public for the first time in Abu Dhabi. The Phoenix Group focuses primarily on mining – and has already signed a contract with the Abu Dhabi sovereign wealth fund. The United Emirates appears to be a lucrative location for miners.
The United Arab Emirates’ first crypto IPO recently took place on the Abu Dhabi Stock Exchange.
It is not unusual for crypto companies to issue shares. In the US, many miners finance their operations through stocks, and the Coinbase exchange became probably the largest publicly traded crypto company after its IPO. In Germany, too, the Bitcoin Group allows investors to participate in the success of Bitcoin.de through shares.
The Phoenix Group is now the first publicly traded crypto company in the Emirates. When it issued shares in November, Phoenix brought in 371 million for 15 percent of the company’s shares.
Phoenix is a group of companies consisting of 29 individual companies. One focus is on mining. The group operates mining farms in the USA, Canada, Europe and the Middle East with a total of 725 megawatts, in which investors can also participate via cloud mining. She also sells miners and hardware wallets in a shop on the famous Sheikh Zayed Road in Dubai. Finally, she recently launched M2, a trading platform for more than 30 cryptocurrencies where you can also earn good interest on Bitcoin and Ether.
So Phoenix tries to cover a very wide spectrum of the ecosystem. However, the focus is still on mining. The company has already used the share proceeds to purchase additional equipment. It has ordered $136 million worth of Ascis from minng maker Whatsminer and reserved additional miners worth $246 million.
In general, the Arab Emirates currently seem to be establishing themselves as a new location for mining. The country is attractive because of its business-friendly policies and heavily subsidized electricity prices. Depending on the industry, electricity costs between one and ten cents. The low prices for private consumers have reportedly made mining widely popular.
Even Abu Dubai’s sovereign wealth fund is interested. The digital investment arm, Zero Two, decided together with Phoenix in 2021 to build a 200 megawatt farm. This year, Zero Two also launched a partnership with the American miner Marathon to build a 250MW farm together. The fund has an advantage in that, as a state body, it enjoys cheaper electricity tariffs than private sector miners.
The United Arab Emirates has huge oil and gas reserves. While they mainly export oil, they generate most of their electricity with natural gas. However, the country is trying to increase its share of renewable energies with a nuclear power plant and the expansion of photovoltaics. Thanks to the abundance of sun and open space, the photovoltaic potential is virtually unlimited. These ambitious plans are likely to generate, at least temporarily, a surplus of electricity for which miners can be grateful buyers.