The United Arab Emirates (UAE) is making its entry into the bitcoin mining sector. In a recent declaration by Phoenix Group PLC, a bitcoin mining enterprise, it was revealed that the company successfully garnered $370 million through an initial public offering (IPO) that was highly sought after, achieving a 33-fold oversubscription.

UAE Forges New Path in Bitcoin Mining With Phoenix Group’s $370M IPO

Bitcoin mining and blockchain infrastructure firm Phoenix Group has announced it’s raised 1.3 billion UAE dirhams ($370 million) in an IPO that started on November 16 and closed two days later. The company will be listed on the Abu Dhabi Securities Exchange (ADX) with the ticker PHX.

“The overwhelming interest during the offer period is a powerful endorsement of our pioneering role in cryptocurrency mining and blockchain,” Bijan Alizadehfard, the co-founder and group CEO of Phoenix said.

The company’s prospectus says that it has established significant operations including a mining farm in Oman in collaboration with Green Data City and Microbt. Phoenix is also involved in multiple other ventures, such as hosting agreements with PTC Cloud Tech – FZCO, power supply contracts with Marlboro Electric Cooperative, and a 20% stake in Bitzero Inc.

The prospectus details that the company’s focus initially is on growth and expansion, with plans to adopt an active dividend policy after 2-3 years. This strategy is designed to return to shareholders substantially all of its distributable free cash flow while maintaining an investment-grade credit profile. Phoenix co-founder Munaf Ali added the capital raise from the IPO was a significant milestone.

“The exceptional oversubscription during our offer period is a clear indicator of the market’s endorsement of Phoenix Group as a leader in Cryptocurrency Mining and Blockchain Technology,” Ali stated.

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