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Abu Dhabi’s First Crypto Miner Exhibits Preliminary Report Following $370M IPO Success

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In early
December, the primary cryptocurrency firm made its debut on the Abu Dhabi
inventory market, receiving a heat welcome from buyers. Two months later, Phoenix
Group UAE, specializing within the mining of cryptocurrency property, revealed its
2023 report. Regardless of a big drop in income, it achieved an
enhance in internet revenue.

The
unaudited preliminary outcomes launched this week present that the digital asset
miner considerably elevated the worth of its property in comparison with 2022, rising
from $230,000 to $834,000.

Though
revenues for 2023 had been nearly thrice decrease than in 2022, dropping to
$288,000, the corporate improved its working revenue, which grew by 50% to
$208,000. The web revenue for the reported interval was almost $221,000, with
earnings per share modestly growing from $0.03 reported in 2022 to $0.04.

However the place
did such a big leap in revenue come from, with a really sturdy limitation
of revenues? We seemed for data on this within the firm itself. Its
representatives said this was as a consequence of a “one-time contract,” which distorted the corporate’s anticipated money flows.

“We
noticed important natural development of 20% past that outlier, demonstrating the
power of our core enterprise,” the corporate commented in an e-mailed
assertion to Finance Magnates. “That is additional mirrored in our
spectacular year-on-year development in key areas resembling self-mining which noticed an
enhance of 480%.”

The corporate
additionally mentions a 119% enhance in internet hosting service revenues within the report. This
was made attainable by establishing cooperation with “high-net-worth people,”
creators of mining tools and energy provide corporations.

“Our
success has been spectacular, however 2024 guarantees to be actually
transformative,” stated Seyed Mohammad Alizadehfard (Bijan), the Co-Founder
and CEO of Phoenix. “With formidable plans and an unwavering dedication to
excellence, the group is poised to redefine success, not simply within the UAE, however
on a worldwide scale.”

Earlier
this yr, the corporate additionally introduced that it had entered into an settlement
with Bitmain, a producer of cryptocurrency miners, to buy machines for
mining cryptocurrencies . The deal was valued at $187 million.

Shareholders Present Lack of
Optimism

Though
the Phoenix Group UAE IPO was met with a heat reception from shareholders and
the corporate raised $370 million, it has been on a downward development since then.
From the highs reached on December 8, shares misplaced about 20% to Wednesday’s
minimums (examined after the publication of the report).

Supply: TradingView

The
firm’s representatives declare that the decline in valuation could also be brought on by
“varied components.” Nevertheless, they continue to be satisfied of the
“long-term development prospects primarily based on sturdy financials and strategic
partnerships.”

The corporate’s IPO got here at a time when different publicly listed companies within the digital asset mining sector had been beginning to transition their machines away from crypto mining and in direction of offering computing energy for the unreal intelligence business as an alternative. In 2022, complete revenues for the cryptocurrency mining business dropped to $6 billion, down considerably from the all-time excessive of $12 billion generated in 2021.

We’ll
have to attend till March for the complete and audited outcomes of the corporate when
we’ll be taught the precise construction of revenues, prices and the situation of the
enterprise. As Phoenix claims, the report “will additional reveal the
underlying worth” of the corporate.

In early
December, the primary cryptocurrency firm made its debut on the Abu Dhabi
inventory market, receiving a heat welcome from buyers. Two months later, Phoenix
Group UAE, specializing within the mining of cryptocurrency property, revealed its
2023 report. Regardless of a big drop in income, it achieved an
enhance in internet revenue.

The
unaudited preliminary outcomes launched this week present that the digital asset
miner considerably elevated the worth of its property in comparison with 2022, rising
from $230,000 to $834,000.

Though
revenues for 2023 had been nearly thrice decrease than in 2022, dropping to
$288,000, the corporate improved its working revenue, which grew by 50% to
$208,000. The web revenue for the reported interval was almost $221,000, with
earnings per share modestly growing from $0.03 reported in 2022 to $0.04.

However the place
did such a big leap in revenue come from, with a really sturdy limitation
of revenues? We seemed for data on this within the firm itself. Its
representatives said this was as a consequence of a “one-time contract,” which distorted the corporate’s anticipated money flows.

“We
noticed important natural development of 20% past that outlier, demonstrating the
power of our core enterprise,” the corporate commented in an e-mailed
assertion to Finance Magnates. “That is additional mirrored in our
spectacular year-on-year development in key areas resembling self-mining which noticed an
enhance of 480%.”

The corporate
additionally mentions a 119% enhance in internet hosting service revenues within the report. This
was made attainable by establishing cooperation with “high-net-worth people,”
creators of mining tools and energy provide corporations.

“Our
success has been spectacular, however 2024 guarantees to be actually
transformative,” stated Seyed Mohammad Alizadehfard (Bijan), the Co-Founder
and CEO of Phoenix. “With formidable plans and an unwavering dedication to
excellence, the group is poised to redefine success, not simply within the UAE, however
on a worldwide scale.”

Earlier
this yr, the corporate additionally introduced that it had entered into an settlement
with Bitmain, a producer of cryptocurrency miners, to buy machines for
mining cryptocurrencies . The deal was valued at $187 million.

Shareholders Present Lack of
Optimism

Though
the Phoenix Group UAE IPO was met with a heat reception from shareholders and
the corporate raised $370 million, it has been on a downward development since then.
From the highs reached on December 8, shares misplaced about 20% to Wednesday’s
minimums (examined after the publication of the report).

Supply: TradingView

The
firm’s representatives declare that the decline in valuation could also be brought on by
“varied components.” Nevertheless, they continue to be satisfied of the
“long-term development prospects primarily based on sturdy financials and strategic
partnerships.”

The corporate’s IPO got here at a time when different publicly listed companies within the digital asset mining sector had been beginning to transition their machines away from crypto mining and in direction of offering computing energy for the unreal intelligence business as an alternative. In 2022, complete revenues for the cryptocurrency mining business dropped to $6 billion, down considerably from the all-time excessive of $12 billion generated in 2021.

We’ll
have to attend till March for the complete and audited outcomes of the corporate when
we’ll be taught the precise construction of revenues, prices and the situation of the
enterprise. As Phoenix claims, the report “will additional reveal the
underlying worth” of the corporate.

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