Crypto mining firm Phoenix rises 50% on first day of trading after $370 million IPO

Crypto mining and blockchain technology firm Phoenix Group saw its shares soar by around 50% on its Abu Dhabi Securities Exchange (ADX) debut today, following an initial public offering (IPO) that raised $370 million.

Phoenix (PHX) rose to 2.20 United Arab Emirates dirhams ($0.60) in early trading, up from an IPO price of 1.50 dirhams ($0.41), before falling back. PHX is currently priced at 2.02 dirhams, according to TradingView data.

PHX/AED price chart. Image: TradingView.

Phoenix’s IPO marks the first public listing of a crypto-related company in the Middle East and was 33 times oversubscribed, according to the firm — some $12 billion worth of orders. Phoenix made 907,323,529 shares available at 1.50 dirhams per share (a 17.6% stake of the company's share capital), with particular interest from retail investors, who oversubscribed by 180 times. Professional investors oversubscribed by 22 times. The company’s post-IPO valuation is estimated at approximately $2.5 billion.

The listing was moved back a day after the UAE’s Ministry of Human Resources and Emiratisation marked Dec. 2 to Dec. 4 as public holidays for the private sector. 

Phoenix Group said in a statement that its strategic initiatives, including a joint venture with the Abu Dhabi government, demonstrated a fusion of public policy and private sector innovation. It also said it was committed to environmental sustainability, such as developing the largest hydropower mining farm in Abu Dhabi.

“Anchored by four pillars — innovation in Bitcoin mining, renewable energy ventures, advanced manufacturing capabilities and strategic acquisitions — this IPO is more than an achievement; it's a launching pad for Phoenix Group's global aspirations,” Phoenix co-founder and Group CEO Bijan Alizadehfard added.

International Holding Company, Abu Dhabi’s largest conglomerate run by the Emirates’ royal family, acquired a 10% stake in Phoenix in early October.

In May, the UAE Central Bank issued guidance outlining the risks of dealing with virtual assets and service providers. The guidance came with authorities in the UAE doing their utmost to lure crypto businesses to the region, including a welcoming regulatory framework. In March, Dubai unveiled a new agency tasked with virtual asset regulation. Several major crypto firms, including Coinbase, have praised the approach taken by regulators in the region.

Bitcoin mining stocks and the broader crypto market surge

Bitcoin mining company CleanSpark also surged this week, rising around 18% to reach a peak of $9.37 before market close yesterday, according to TradingView. CLSK is currently priced at $8.59 in pre-market trading, up 322% year-to-date, and is the first public miner to hit yearly highs. Rival mining stocks are not too far behind, with Bitfarms, Marathon and Riot all up over 10% yesterday and more than 300% for the year.

CLSK/USD price chart. Image: TradingView.

Beyond mining stocks, Bitcoin’s price briefly surged above $42,000 yesterday, returning to levels not seen since the Terra ecosystem crash in May 2022, and has now risen by over 150% year-to-date. The top cryptocurrency by market cap currently trades at $41,701, according to The Block's price data.

BTC/USD price chart. Image: The Block/TradingView.

Among the altcoin market, Ether currently trades at $2,209, up 84% year-to-date. Solana is the best performer among the top crypto assets, up over 500% for the year, while BNB is down around 6% in 2023 after a year of legal and regulatory issues for Binance.