Phoenix Soars in Abu Dhabi Market Debut amid Crypto Surge

Phoenix Soars in Abu Dhabi Market Debut amid Crypto Surge

Time Stamp: December 5, 2023 3:41 AM
Source Node: 2993834

The first
cryptocurrency company has just made its debut in Abu Dhabi’s stock market with
considerable success. Phoenix’s shares jumped by 50% after an initial public
offering (IPO) worth $371 million. According to one of the company’s Co-Founders,
this indicates a growing appetite for financial innovations in the Middle East.

Phoenix
Group PLC, a technology company specializing in mining digital assets
and blockchain technology, had its first listing today (Tuesday) on the Abu
Dhabi Securities Exchange (ADX). This marks the local market’s first encounter
with a company operating directly in the cryptocurrency industry, and investor
response has shown a keen interest in exposure to this sector.

The company
chose ADX for its IPO because the exchange “offers a dynamic and rapidly
growing financial market that aligns with Phoenix’s vision.” The first day
of trading exceeded the expectations of even the most optimistic analysts.

Shares
opened at 2.25 dirhams on Tuesday, increasing by 50% from the IPO price of 1.50
dirhams. The offer was 33 times oversubscribed, translating into orders worth
$12 billion. For the retail portion of the offering, the oversubscription rate
was 180x.

Phoenix debut on ADX. Source: Tradingview.com

“This event
is not just about listing our shares; it’s a powerful declaration of the Middle
East’s rising prominence in the global tech and blockchain landscape,”
commented Munaf Ali, the Co-Founder & Group MD of Phoenix.

Publicly Listed Miners
Shifting Focus to AI

Phoenix
debuts as a miner on ADX at a time when other publicly listed companies in the
same sector are beginning to shift their machines from cryptocurrency mining to
supporting the computing power needs of the artificial intelligence (AI)
industry. In 2022, the sector generated revenues of $6 billion lower than in the
record-breaking year of 2021.

In its report, JPMorgan suggested that the high-performance computing (HPC) sector in AI could become much more profitable than Bitcoin mining. Well-known brands
in the Bitcoin mining industry, such as Riot Blockchain (RIOT) and Hive
Blockchain Technologies (HIVE), have even changed their names to emphasize the
diversification of their businesses. RIOT has become Riot Platform, and HIVE is
now Hive Digital Technologies.

Finance
Magnates inquired
if Phoenix fears that AI might become a more lucrative business in the near
future. The company representatives state that the primary focus remains on
crypto mining, but Phoenix is “actively monitoring the AI space.”

For the
company, this area “could complement existing operations and future
growth,” especially if JPMorgan’s forecasts regarding HPC come true.

The first
cryptocurrency company has just made its debut in Abu Dhabi’s stock market with
considerable success. Phoenix’s shares jumped by 50% after an initial public
offering (IPO) worth $371 million. According to one of the company’s Co-Founders,
this indicates a growing appetite for financial innovations in the Middle East.

Phoenix
Group PLC, a technology company specializing in mining digital assets
and blockchain technology, had its first listing today (Tuesday) on the Abu
Dhabi Securities Exchange (ADX). This marks the local market’s first encounter
with a company operating directly in the cryptocurrency industry, and investor
response has shown a keen interest in exposure to this sector.

The company
chose ADX for its IPO because the exchange “offers a dynamic and rapidly
growing financial market that aligns with Phoenix’s vision.” The first day
of trading exceeded the expectations of even the most optimistic analysts.

Shares
opened at 2.25 dirhams on Tuesday, increasing by 50% from the IPO price of 1.50
dirhams. The offer was 33 times oversubscribed, translating into orders worth
$12 billion. For the retail portion of the offering, the oversubscription rate
was 180x.

Phoenix debut on ADX. Source: Tradingview.com

“This event
is not just about listing our shares; it’s a powerful declaration of the Middle
East’s rising prominence in the global tech and blockchain landscape,”
commented Munaf Ali, the Co-Founder & Group MD of Phoenix.

Publicly Listed Miners
Shifting Focus to AI

Phoenix
debuts as a miner on ADX at a time when other publicly listed companies in the
same sector are beginning to shift their machines from cryptocurrency mining to
supporting the computing power needs of the artificial intelligence (AI)
industry. In 2022, the sector generated revenues of $6 billion lower than in the
record-breaking year of 2021.

In its report, JPMorgan suggested that the high-performance computing (HPC) sector in AI could become much more profitable than Bitcoin mining. Well-known brands
in the Bitcoin mining industry, such as Riot Blockchain (RIOT) and Hive
Blockchain Technologies (HIVE), have even changed their names to emphasize the
diversification of their businesses. RIOT has become Riot Platform, and HIVE is
now Hive Digital Technologies.

Finance
Magnates inquired
if Phoenix fears that AI might become a more lucrative business in the near
future. The company representatives state that the primary focus remains on
crypto mining, but Phoenix is “actively monitoring the AI space.”

For the
company, this area “could complement existing operations and future
growth,” especially if JPMorgan’s forecasts regarding HPC come true.

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