Crypto mining company Phoenix is considering an IPO in Abu Dhabi as the region becomes increasingly favorable to cryptocurrencies.
Discussions underway for an IPO
Phoenix Technology is a company specializing in the operation, installation and supply of crypto mining equipment. Based in the United Arab Emirates, the mining sector leader is preparing to go public on the Abu Dhabi stock exchange.
According to a report from Bloomberg, the company is currently in talks to finalize its project in the region and carry out an initial public offering (IPO) in Abu Dhabi. While waiting for the details of the deal to be finalized, the company is taking steps to access new investors and broaden its financial base.
According to the report, it is currently developing one of the largest crypto mining facilities in the world. In 2021, Phoenix Technology has signed a $650 million agreement to acquire mining platforms. With this acquisition, the company increases its capacity to 1.4 GW. This initiative testifies to Phoenix in the potential of the United Arab Emirates as they become a little more sought-after over time.
The United Arab Emirates very much in favor of cryptos
Thanks to its regulatory clarity on digital assets, the United Arab Emirates is increasingly distinguishing itself among the most crypto-friendly. The country has undertaken initiatives to regulate the ecosystem and offer a reliable and secure market. In particular, the introduction of the RAK Digital Assets Oasis in the Emirate of Ras Al-Khaimah and the creation of the Virtual Assets Regulatory Authority of Dubai (VARA).
Although market regulation is an important issue, it’s worth noting that cheap energy is one of the main attractions for bitcoin (BTC) miners.
These advantages have attracted several crypto companies such as Marathon Digital Holdings (MARA). The crypto mining company recently announced the construction of 250 MW facilities with a local partner in Abu Dhabi.
All these initiatives are boosting competition in the crypto mining sector. However, while the benefits attract companies, it should be noted that the UAE is very strict when it comes to regulatory compliance. Phoenix Technology’s initiative is further proof that cryptocurrencies are on the right track in the region, but only if they meet the required standards.
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