Bitcoin miner Phoenix surges 50% after $371M Abu Dhabi IPO

Cryptocurrency mining firm Phoenix Group has debuted trading on the Abu Dhabi Securities Exchange (ADX), becoming one of the Middle East’s first publicly listed industry firms.

The Phoenix Group stock (PHX) opened at 2.25 dirhams (AED) — or $0.6 — on Dec. 5, according to data from the ADX exchange. The PHX stock has soared as much as 50% from the initial public offering (IPO) price of 1.50 AED, or $0.41, as per the Phoenix IPO prospectus.

The public listing comes a few weeks after Phoenix Group successfully closed its IPO with an oversubscription of 33 times on Nov. 18, selling 907,323,529 shares for around 1.3 billion AED, or $371 million. The portion of the IPO reserved for retail investors was oversubscribed 180 times, while professional investors oversubscribed the offering 22 times.

The Phoenix cryptocurrency miner aims to use the IPO proceeds to fund its future growth and deliver positive returns for investors. According to Phoenix Group co-founder and CEO Bijan Alizadeh, the company’s ambitions are anchored by four pillars, including “innovation in Bitcoin mining, renewable energy ventures, advanced manufacturing capabilities and strategic acquisitions.”

Founded in 2015 by Alizadeh and Munaf Ali, Phoenix is a major company in the Middle East blockchain industry, collaborating with major authorities in the region. In August 2023, Phoenix signed an agreement to build a $300 million crypto-mining farm in Oman, in the presence of Omani Minister of Transport Saeed Al Maawali and chairman of the Abu Dhabi Stock Exchange, Hisham Malak.

Related: CZ challenges US gov’t attempt to restrict travel before sentencing date

One of the main aspects of Phoenix’s vision is its commitment to sustainability in cryptocurrency mining, or using renewable sources for cryptocurrency mining. 95% of Phoenix’s power comes from renewables, primarily hydropower, Alizadeh said in September 2023.

In October 2023, Abu Dhabi conglomerate International Holding Company acquired a 10% stake in cryptocurrency firm Phoenix Group through its subsidiary International Tech Group.

Magazine: Bitcoin ETF race has a new player, Binance ends support for BUSD, and more: Hodler’s Digest: Nov. 26 – Dec. 2