Acryptoinvest.news: UAE-based bitcoin mining company Phoenix made headlines this week by announcing its $370 million oversubscribed IPO on the Abu Dhabi Stock Exchange.
Ahead of the public offering, Phoenix has published a 170-page IPO prospectus shedding light on its operations, current scale and financial statements for 2021, 2022 and the first nine months of 2023.
Although the financial statements are not in a searchable format, TheMinerMag has extracted the important numbers to present additional information about Phoenix Group's business below.
The main takeaway is that Phoenix appears to have been more of a Bitcoin mining hardware distributor than a private miner or rig hosting business. It will be interesting to see how this further balances business flows.
Shareholder structure
During the IPO, Phoenix offered 907 million shares for sale, of which 60 million shares were allocated to retail investors and 847 million shares were allocated to professional investors. Retail and professional investors have shown strong interest, being oversubscribed by 180 and 22 times respectively, indicating growing enthusiasm for Bitcoin mining in the region, according to Phoenix.
Phoenix's board of directors consists of five people, three of whom will collectively control 64.89% of the shares after the IPO, namely Dahalan (42.02%), Alizadefard (12.68%) and Munaf Ali (10.19%).
Acryptoinvest.news: Source: Phoenix Group
Business overview
Phoenix Group divides its activities into three main areas: in-house Bitcoin mining, colocation hosting and ASIC sales. In addition, he owns a minority stake in the crypto investment platform M2. Key points from the prospectus include:
Team size: 191 employees, 157 of which are based in the UAE. Hashrate: 13.9 Eh/s. Own operational hashrate: not disclosed. Presence in North America: 100 MW and additional 115 MW in the near future. Presence in the Middle East: 250 MW in Abu Dhabi and 150 MW in Oman, the latter through a partnership with Green Data City. Exclusive distribution of WhatsMiner in the UAE, GCC countries, Egypt, Turkey and Kenya. For the full fiscal year 2023, Phoenix projects total revenue of $247 million and EBITDA of $172 million..
Despite the emphasis on power and infrastructure, Phoenix's revenue stream appears to depend primarily on hardware sales, namely Antminer and WhatsMiner. It also has the rights to distribute some brands of Bitcoin cold wallets, but the revenue from this is relatively trivial.
For example, Phoenix Group's revenue grew to $755 million in 2022. Phoenix World Electronics, the group's computer equipment trading subsidiary, contributed $720 million, representing 95.44%. Approximately $715 million of this amount came from sales through distribution agreements with Bitmain and MicroBT, giving a gross margin of approximately 22%.
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Notably, Phoenix noted that sales remained strong in 2023, but did not provide a breakdown of hardware sales for the first nine months of 2023, nor did it provide the detailed disclosures it provided for 2021 and 2022.