UAE’s Crypto Mining Giant Phoenix Technology Considers Floating IPO in Abu Dhabi

Crypto mining equipment retailer Phoenix Technology is considering an initial public offering (IPO) according to reports. On Friday, Bloomberg reported that the company is already in preliminary discussions, citing people familiar with the matter.

The report states that the United Arab Emirates-based firm is considering an IPO in Abu Dhabi. While conversations are ongoing, the suggested timeline for the Phoenix Technology IPO is sometime this year. However, all details, including the proposed timeline, are tentative.

Phoenix Technology was established in 2015 and is a part of the Phoenix Group. The company is considered one of the largest in the crypto and blockchain sector, with mining facilities capable of more than 700 megawatts (MW) across the Middle East, Canada, Europe, and the USA. Currently, Phoenix Technology is building one of the Middle East’s largest mining facilities.

Phoenix Technology IPO to Boost UAE’s Position as Leading Mining Hub

The United Arab Emirates has a crypto and Web3-friendly environment, which is attractive to stakeholders in the industry. The country is now focusing more on renewable energy than traditional fossil fuels, a move that would likely benefit its mining ecosystem. This transition could create excess energy that crypto miners like Phoenix Technology can use to ensure their activities, while energy-intensive, are green.

Earlier this month, Luxor business development associate and crypto mining expert Jaran Mellerud highlighted the country’s mining industry in a Twitter thread. Mellerud discussed a partnership between blockchain infrastructure company and Abu Dhabi sovereign wealth fund subsidiary Zero Two, and US-based crypto mining giant Marathon Digital. The partnership between both companies will see the launch of two mining facilities in Abu Dhabi with 250MW in combined capacity. Interestingly, Zero Two partnered with Phoenix Technology back in 2021.

Mellerud also talked about a nuclear power plant the UAE recently launched, the largest in the Arab world. The plant has a capacity of 4 gigawatts (GW) with three commissioned reactors, generating about 19% of the UAE’s electricity. The plant’s capacity is expected to hit 5.4 GW when a fourth reactor goes live sometime this year. Crypto mining in the country is likely to benefit from the surplus energy that the country generates via renewable sources.

UAE Mining Regulation

Authorities in the UAE have been more open to mining activities than governments in other countries like China. The UAE allows miners to use its zero tax policy, as these companies can register in of the many free trade zones in the country. This way, they get to sidestep obligations such as import duties, value-added tax (VAT), and corporate tax.

Some of the biggest names in crypto are also paying close attention to the UAE and engaging its ecosystem. For instance, Chanpeng Zhao and He Yi, both Binance co-founders, now live in Dubai. In addition, Coinbase CEO Brian Armstrong has also set eyes on the city and met with authorities.