Bitcoin miner Phoenix Group made its trading debut in Abu Dhabi, up 50% to $2.47 billion.
Phoenix Group, a Bitcoin (BTC) miner headquartered in the Middle East, became the first cryptocurrency-related company to list on the Abu Dhabi Stock Exchange (ADX) today, December 5, according to a post on social media platform came out
The miner was originally scheduled to be listed on December 4, but its debut was postponed to today after authorities declared the last three days a public holiday.
However, the delay does not appear to have affected the stock’s performance, as the price soared more than 50% from an initial price of 1.50 AED (equivalent to $0.41) to 2.25 AED ($0.6) before falling slightly to 2.03 AED. According to data from the ADX website as of press time.
This strong debut performance can be attributed to the high interest and attention Phoenix has generated since its initial public offering (IPO) last November raised $370 million. At the time, the company explained that the success of this IPO exceeded initial expectations and raised 33 times more funds than expected. The miner said it is estimated to be worth about $2.47 billion after the IPO.
Phoenix Group also highlighted its strategic initiatives, including a joint venture with the Government of Abu Dhabi, as a convergence of public policy and private sector innovation. The company also highlighted its commitment to environmental sustainability by outlining plans to build Abu Dhabi’s largest hydroelectric power plant.
Founded in 2015, Phoenix Group has solidified its position as a major BTC miner in the Middle East, including agreeing to establish a $300 million cryptocurrency mining farm in Oman. Notably, the company has a 725 MW global mining operation encompassing hosting and mining services across the United States, Canada, Europe, and the Middle East.
What is driving your interest in PHX?
The success of the PHX IPO highlights growing investor interest in Bitcoin. Institutional investors have traditionally avoided direct investments in Bitcoin, but have accepted exposure indirectly by investing in stocks of Bitcoin mining companies.
Last October, International Tech Group, a subsidiary of International Holding Company, Abu Dhabi’s largest conglomerate, acquired a 10% stake in Phoenix, further highlighting its appeal in the market.
In addition to the Bitcoin craze, factors such as surging oil prices and government privatization plans have boosted IPO activity in the region. Moreover, the favorable regulatory environment in the UAE has led to more cryptocurrency companies setting up shop there.
