Phoenix Group Acquires $380 Million Worth of Green Mining Equipment from WhatsMiner

Last updated: December 7, 2023 22:41 EST
. 2 min read

Disclosure: Crypto is a high-risk asset class. This article is provided for informational purposes and does not constitute investment advice. By using this website, you agree to our terms and conditions. We may utilise affiliate links within our content, and receive commission.

Phoenix mining group — Source: Brian Wangenheim / Unsplash

Phoenix Group, a United Arab Emirates Bitcoin mining firm, has disclosed a $380 million deal with WhatsMiner for hydro cooling mining equipment.

On December 7, Bitcoin miner Phoenix Group announced that it had swiftly secured a $380 million hydro cooling hardware deal with Whatsminer, a notable achievement less than 48 hours after its stock debuted on the Abu Dhabi Securities Exchange (ADX).

Phoenix Group revealed plans to integrate hydrocooling miners in collaboration with WhatsMiner, a move aimed at establishing high-performance computing (HPC) data centers of global repute. This strategic shift aligns with the company’s commitment to adopting eco-friendly practices in crypto mining, positioning itself as a leader in responsible and efficient mining solutions.

The purchase includes mining equipment valued at $136 million, with an additional option for $246 million. This substantial deal is touted as the most significant order for Whatsminer in the past two years, solidifying Phoenix Group’s position in the crypto mining sector.

WhatsMiner’s hydro cooling hardware uses a closed-loop water system, offering more efficient heat transfer compared to air or oil, leading to reduced operational costs and a minimized environmental impact, the company claims.

As the exclusive distributor of WhatsMiner equipment since 2022, Phoenix sees this collaboration as a crucial step in establishing high-performance computing (HPC) data centers. The deployment location of the equipment could be clearer, as Phoenix operates mining facilities not only in the UAE but also in Canada and the United States.

Phoenix Group Soars on ADX Debut, Secures Major WhatsMiner Deal Amid Crypto Industry Challenges

WhatsMiner, a brand owned by MicroBT, was founded in 2016 by Zuoxing Yang, a former Bitmain employee and one of the designers behind the Antminer S9. In October, WhatsMiner introduced its latest mining rigs featuring hydro, immersion, and air-cooling systems.

Phoenix is not only an exclusive distributor of WhatsMiner hardware but also Bitmain’s official Middle East distributor. Phoenix Group’s recent hardware deal comes on the heels of its historic debut on the Abu Dhabi Securities Exchange (ADX) on December 5, following a successful initial public offering (IPO) in November that raised $370 million.

The company recently debuted on the ADX, with its stock price opening at 2.25 UAE dirhams ($0.60), soaring over 50% from its initial public offering (IPO) of 1.50 dirhams ($0.41). The company’s stock performance on the ADX has been positive, with market capitalization exceeding $4 billion (15.1 billion AED) within the initial two days of trading.

Phoenix’s IPO subscriptions exceeded the offer by 33 times, with 907,323,529 shares sold for 1.3 billion dirhams ($371 million). However, the crypto mining industry has faced challenges, including rising energy costs and lower Bitcoin prices, leading companies like Canaan to raise capital due to a sharp decline in revenue.

Bijan Alizadehfard, the co-founder and CEO of Phoenix Group, credited the successful ADX listing for empowering the company to forge significant partnerships with major mining firms like Whatsminer, further enhancing its capabilities in the blockchain and cryptocurrency sectors.

Although Phoenix Group did not disclose specific details about the type of mining machines being acquired, other players, such as Texas-based Bitcoin miner Riot Platforms, have also made substantial investments in hardware, as exemplified by Riot’s acquisition of over 66,000 mining machines for $290 million in collaboration with MicroBT.