Abu Dhabi Bitcoin miner looks to list in US as it shifts focus to AI
Phoenix Group, a leading Bitcoin mining company headquartered in Abu Dhabi, is set to significantly increase its global data center capacity to over 1 gigawatt in the next two years. The expansion aims to tap into the realm of artificial intelligence while exploring the possibility of listing part of the business in the United States, according to CEO Munaf Ali.
Ranked among the top 10 Bitcoin miners worldwide, Phoenix Group operates in various countries including Canada, Ethiopia, Oman, the UAE, and the US. The company’s operational strategy revolves around acquiring land and securing access to long-term power sources. Unlike traditional warehouses, Phoenix houses its rigs in 20-foot containers, providing flexibility to transition between cryptocurrency mining and AI data center operations based on market demand.
Ali emphasized the synergy between AI and crypto, highlighting the quick operational setup of Bitcoin mining compared to the lengthier process of constructing an AI data center. He stated, “AI de-risks crypto and crypto de-risks AI.” The ability to swiftly deploy Bitcoin mining operations in as little as six months contrasts with the extensive time required to establish an AI data center and attract tenants.
While major data center expansions often grab headlines, Ali noted a rising demand for smaller facilities to comply with local regulations that necessitate domestic hosting of data and cloud operations. Many businesses with such requirements do not require the vast capacity of hyperscalers. Phoenix’s approach involves initially mining cryptocurrency using available power at a new site until AI tenants reach capacity and transition into full operation.
Transportability is a key factor for Phoenix’s operations as the company relocates containers to sites with surplus power. This agility enables the organization to optimize its resources and adapt to changing market conditions efficiently.
In line with future growth plans, Phoenix intends to separate its mining and data center operations and potentially list the unit on a US exchange, with the Abu Dhabi parent company retaining majority ownership. This strategic move is expected to facilitate access to capital and leverage the higher valuations associated with tech companies in the US market.
Looking at the company’s recent performance, Phoenix mined approximately 350 Bitcoins in the first quarter of the year, generating $31 million in revenue. While the core focus remains on mining and data center operations, Phoenix also holds venture investments in the blockchain and digital assets sector.
On a personal note, Ali’s journey into the realm of cryptocurrency was somewhat unconventional. Starting his career as a trader in London, he later ventured into property development in Dubai. Recognizing the limitations faced by individuals with restricted mobility or unfavorable tax situations, Ali diversified into citizenship investment in countries like St. Kitts and Dominica. A chance encounter with a client introduced him to Bitcoin, sparking his transition into full-time crypto mining operations.
As the crypto industry continues to evolve, Ali’s focus remains on building the essential infrastructure rather than chasing fleeting trends. By prioritizing reliable access to electricity and internet connectivity, Phoenix Group positions itself as a key player in the intersection of cryptocurrency mining and AI data center operations.
