Cryptocurrency miner Phoenix rises 50% on first day of trading after $370 million IPO
Cryptocurrency mining and blockchain technology company Phoenix Group saw its shares surge nearly 50% in its Abu Dhabi Stock Exchange (ADX) debut today following an initial public offering (IPO) that raised $370 million.
Phoenix (PHX) rose to 2.20 UAE dirhams ($0.60) in early trading, up from its IPO price of 1.50 dirhams ($0.41), then fell. According to TradingView data, the current price of PHX is 2.02 dirhams.
PHX/AED price chart. Image: TradingView.
Phoenix’s IPO was the first public listing of a cryptocurrency-related company in the Middle East and was oversubscribed 33 times for orders worth about $12 billion, according to the company. Phoenix issued 907,323,529 shares at 1.50 dirhams per share (a 17.6% stake in the company’s capital), attracting particular interest from retail investors who subscribed more than 180 times. Professional investors oversubscribed by 22 times. The company’s post-IPO valuation is estimated at approximately $2.5 billion.
The listing was postponed a day after the UAE Ministry of Human Resources Development designated December 2 to 4 as a public holiday for the private sector.
Phoenix Group said in a statement that its strategic initiatives, including its joint venture with the Government of Abu Dhabi, demonstrate the convergence of public policy and private sector innovation. It also said it was committed to environmental sustainability, including developing the largest hydroelectric mining farm in Abu Dhabi.
“Building on four pillars: Bitcoin mining innovation, renewable energy ventures, advanced manufacturing capabilities and strategic acquisitions, this IPO is more than just an achievement. This is a stepping stone for Phoenix Group’s global aspirations,” added Bijan Alizadehfard, Phoenix co-founder and Group CEO.
International Holding Company, Abu Dhabi’s largest conglomerate run by the Emirati royal family, acquired a 10% stake in Phoenix in early October.
Last May, the UAE Central Bank issued guidance outlining the risks of trading with virtual assets and service providers. The guidance comes as UAE authorities are doing their best to attract cryptocurrency companies to the region, including a welcome regulatory framework. In March, Dubai unveiled a new agency responsible for regulating virtual assets. Several major cryptocurrency companies, including Coinbase, praised the approach taken by regulators in the region.
Bitcoin mining stocks and the broader cryptocurrency market surge
Bitcoin mining company CleanSpark also surged this week, reaching a high of $9.37 before the market closed yesterday, up about 18%, according to TradingView. CLSK is currently trading pre-market at $8.59, up 322% year-on-year, and is the first public miner to hit a yearly high. Competitor mining stocks aren’t far behind, with Bitfarms, Marathon, and Riot all up more than 10% yesterday and more than 300% this year.
CLSK/USD price chart. Image: TradingView.
Beyond mining stocks, the price of Bitcoin briefly surged above $42,000 yesterday, returning to levels not seen since the collapse of the Terra ecosystem in May 2022 and is now up more than 150% year-to-date. The top cryptocurrency by market cap is currently trading at $41,701, according to price data from The Block.
BTC/USD price chart. Image: Block/TradingView.
Among the altcoin markets, Ether is currently trading at $2,209, which is an 84% increase compared to the same period last year. Solana has been the best performer among the top crypto assets, up over 500% year-to-date, while BNB is down around 6% in 2023 after a year of legal and regulatory issues for Binance.
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