Bitcoin miner Phoenix Group buys $187 million worth of miners from Bitmain
With roughly $570 million committed to new mining hardware since last fall, Phoenix appears to be aggressively expanding in hopes of maximizing Bitcoin output.
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Phoenix Group, an Abu Dhabi-based crypto mining firm, has disclosed an agreement to purchase $187 million worth of new Bitcoin mining rigs from Bitmain Technologies, the latest in a series of moves to expand their mining operations.
The purchase was made through Phoenix’s subsidiary Phoenix Computer Equipment and Bitmain dealer Cypher Capital DMCC, according to a filing on the Abu Dhabi Securities Exchange earlier this week. It includes an unspecified number of Bitmain’s latest mining models.
Phoenix stated the new hardware will significantly increase its Bitcoin hashing power. The company went public in December 2022 on the Abu Dhabi exchange and has quickly sought to position itself as one of the largest crypto miners globally in terms of operating capacity.
The Bitmain purchase comes just weeks after Phoenix sealed a $380 million deal with rival mining hardware manufacturer WhatsMiner for new mining units. For that deal in particular, the focus was on WhatsMiner’s hydro-cooling mining rigs. It was the largest order WhatsMiner had received in two years.
With roughly $570 million committed to new mining hardware since last fall, Phoenix appears to be aggressively expanding in hopes of maximizing Bitcoin output.
Last November, Phoenix Group closed its initial public offering (IPO) with an oversubscription multiple of 33 times, reporting that its share offer saw “overwhelming demand.” Phoenix said retail investors oversubscribed the offering 180 times, while professional investors contributed to a 22-fold oversubscription.
The economics of Bitcoin mining present challenges, and Phoenix’s efforts to achieve profitability may face difficulties in this competitive sector.
With the US Securities and Exchange Commission having already approved a Bitcoin exchange-traded fund (ETF), this development is expected to have a significant impact on the Bitcoin mining industry. The ETF approval could catalyze 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 the approval, with Bitcoin’s price now reaching the $46,500 level.
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