- Bitcoin mining company Phoenix Group became the first crypto-related firm to go public on the Abu Dhabi Securities Exchange (ADX) on December 5th, 2022, with shares rising over 50% on opening day amid high investor demand.
- Phoenix highlighted initiatives fueling interest like a joint venture with Abu Dhabi’s government and plans to build the region’s largest hydropower mining farm, showcasing sustainability.
- The successful debut reflects rising institutional demand for Bitcoin exposure through mining stocks, boosted by high oil prices, privatization, and supportive UAE regulations that have drawn crypto companies.
Bitcoin miner Phoenix Group became the first crypto-related firm to go public on the Abu Dhabi Securities Exchange (ADX) on December 5th, 2022. The company’s shares rose over 50% on its first day of trading, showcasing high demand among investors.
Phoenix Shares Surge 50% on Opening Day
The miner was initially scheduled to go public on December 4th but shifted its debut to the 5th after authorities declared public holidays. However, the delay did not dampen enthusiasm for the stock. Phoenix’s share price rapidly climbed from its IPO price of 1.50 AED to 2.25 AED before settling around 2.03 AED.
This strong performance reflects the attention Phoenix has attracted since its November IPO raised $370 million, exceeding expectations. Phoenix said its post-IPO valuation reached approximately $2.47 billion.
Government Partnership and Sustainability Plans Boost Appeal
Phoenix highlighted strategic initiatives fueling interest, like a joint venture with Abu Dhabi‘s government converging policy and innovation. The company also outlined intentions to build the region’s largest hydropower mining farm, showcasing its sustainability commitment.
Since 2015, Phoenix has become a major regional Bitcoin miner, like through a $300 million mining farm agreement in Oman. Its global footprint now spans 725MW across North America, Europe, and the Middle East.
Surging Oil Prices and Supportive Regulations Aid IPOs
Phoenix’s successful debut underscores rising institutional demand for Bitcoin exposure. While direct ownership has been limited, stocks in mining firms provide an alternative.
The company’s attractiveness was further enhanced after Abu Dhabi’s largest conglomerate acquired a 10% stake in October. Beyond crypto demand, factors like high oil prices and privatization have boosted IPO activity in the area. Additionally, supportive UAE regulations have drawn more crypto companies.