Phoenix Group, a crypto mining firm based in Abu Dhabi, has announced its plan to buy $187 million worth of new Bitcoin mining rigs from Bitmain Technologies. This move is part of a series of steps to expand their mining operations. The purchase was conducted through Phoenix’s subsidiary, Phoenix Computer Equipment, and Bitmain dealer Cypher Capital DMCC, as per a filing on the Abu Dhabi Securities Exchange.

The agreement includes an unspecified number of Bitmain’s latest mining models. Phoenix has stated that the new hardware will significantly boost its Bitcoin hashing power. The company, which went public in December 2022 on the Abu Dhabi exchange, is rapidly positioning itself as one of the largest crypto miners globally in terms of operating capacity.

This Bitmain purchase follows closely on the heels of a $380 million deal Phoenix made with rival mining hardware manufacturer WhatsMiner for new mining units. The focus of that deal was on WhatsMiner’s hydro-cooling mining rigs, marking the largest order WhatsMiner had received in two years.

Phoenix has committed approximately $570 million to new mining hardware since last fall, indicating an aggressive expansion strategy aimed at maximizing Bitcoin output. In November, Phoenix Group’s initial public offering (IPO) closed with an oversubscription multiple of 33 times, indicating an “overwhelming demand.” Retail investors oversubscribed the offering 180 times, while professional investors contributed to a 22-fold oversubscription.

However, the economics of Bitcoin mining present challenges, and Phoenix’s efforts to achieve profitability may face difficulties in this competitive sector. The US Securities and Exchange Commission’s recent approval of a Bitcoin exchange-traded fund (ETF) is expected to significantly impact the Bitcoin mining industry. This approval could trigger a rally in the industry, leading to increased investment and potentially boosting investments in the sector. Phoenix’s move can be seen as being in anticipation of this approval, with Bitcoin’s price now reaching the $46,500 level.

This News Article was automatically generated by Bob the Bot (AI)

Information Details
Geography Middle East
Countries 🇦🇪 🇺🇸
Sentiment positive
Relevance Score 1
People None
Companies US Securities and Exchange Commission, WhatsMiner, Bitmain Technologies, Phoenix Group, Abu Dhabi Securities Exchange, Phoenix Computer Equipment, Cypher Capital DMCC
Currencies Bitcoin
Securities None

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