Phoenix Technology, the prominent crypto mining hardware retailer, confirmed plans to hold talks on an initial public offering (IPO) in the United Arab Emirates (UAE). An IPO offering involves selling privately owned shares to retail and institutional clients.
According to two people privy to the matter, Phoenix has started the discussion on offering an IPO to the public. A source familiar with the matter claimed that Phoenix projects the listing to take place this year.
Phoenix Technology to Introduce IPO Offering
News concerning Phoenix’s IPO offering came when the mining company sought to establish the largest mining facility in the Middle East. The Phoenix group has acquired the necessary distribution rights for technological devices in Africa, Turkey, and the Middle East.
In 2021 the Phoenix team closed one of the largest purchase deals on record to acquire mining rigs worth $650 million. Subsequently, the mining company ordered crypto-mining application-specific integrated circuits (ASICs) delivered in Q3 of 2022.
In an interview with “Entrepreneur Magazine,” the co-founder of Phoenix Technology, Bijan Alizadeh, confirmed that the acquisition aimed at enabling the mining company to increase its capacity to 1.4 GW. The executive expressed optimism that UAE would rank as the third-largest crypto hub in the world.
Recently the UAE has invested in improving its market attractiveness to bring more crypto firms to the region. In March, Dubai imposed new regulations on crypto assets and established a new regulatory agency Dubai Virtual Asset Regulatory Authority (VARA).
Suitability of UAE Crypto Market
Before then, the UAE had announced plans to launch free trade zones for digital assets dubbed the RAK Digital Assets Oasis (RAK DAO), aiming at attracting global players in the region. The free trade zone was named after Ras Al Khaimah (RAK), a city within the UAE.
Unlike the US, the UAE has made significant milestones to support the growth of the crypto sector and safeguard the investor’s interests. Besides the regulations, the UAE, an oil-rich country, provides crypto mining firms with cheaper energy.
Recently miner Marathon Digital Holdings entered into a partnership agreement with Zero Two to establish a 250MW mining facility in Abu Dhabi. Correspondingly, Marathon’s top rival, Crusoe Energy, revealed plans to expand to Oman and Abu Dhabi.
In a recent survey, investors claimed that the Gulf region is more business-friendly than other jurisdictions.
A report from an official from Crypto Oasis Saqr Ereiqat revealed that the UAE had adopted streamlined regulations compared to the US’ fragmented regulations.
Even though the UAE is considered a business-friendly region, the regulators have imposed strict regulations. A few months ago, the regulators canceled BitOasis’ license due to noncompliance. After the suspension, VARA regretted that BitOasis failed to meet the deadlines.
