Phoenix Group Announces $380M Deal with WhatsMiner to Boost Hydrocooling Rig Portfolio
Summary:
The United Arab Emirates-based Phoenix Group has inked a $380 million deal with WhatsMiner to acquire its hydro cooling mining hardware. This is part of Phoenix's strategy to bolster its High-Performance Computing (HPC) data centers. The contract includes $136 million worth of mining equipment, with an additional $246 million option on the table. Significantly, Phoenix is the exclusive distributor of WhatsMiner's hardware, as well as Bitmain's official Middle East distributor. Phoenix recently made its debut on the Abu Dhabi Securities Exchange, with its IPO exceeding expectations 33 times over.
The Phoenix Group, a business based in the United Arab Emirates, revealed a huge procurement of hardware materials from WhatsMiner, intending to grow its collection of hydro-cooled systems. A December 7th declaration unveiled the deal to be worth $380 million, the largest order received by WhatsMiner in the last twenty-four months.
By virtue of this contract, Phoenix procured mining apparatus priced at $136 million with an additional option worth $246 million up for grabs. The hydro-cooling machinery by WhatsMiner, which was launched in 2022, currently falls within a price range of $1,008 and $2,484, as noted by the manufacturer's website.
The hydro-cooled hardware developed by WhatsMiner utilizes a self-contained water cycle to conserve the quantity and integrity of the water within the pipes. Based on information from the inventing firm, this system offers an improved rate of heat transmission as water emerges as a better heat transmitter compared to air or oil. Moreover, the effectiveness of such a system prompts a decrease in operational expenses as it greatly lowers the environmental footprint, as stated by the firm.
Since 2022, Phoenix has held the exclusive distribution rights to WhatsMiner's machinery, with this latest joint venture marking a significant stride towards fostering High-Performance Computing (HPC) data centers, according to Phoenix. It remains unknown where this equipment will be stationed as Phoenix owns mining facilities both in the UAE as well as in Canada and the United States.
WhatsMiner is a subsidiary of MicroBT, established by Zuoxing Yang, a former Bitmain employee, and a key architect of the Antminer S9 in 2016. In October, WhatsMiner launched a range of mining machinery equipped with hydro, immersion, and air-cooling systems.
Phoenix’s domain isn’t confined to being the sole distributor of WhatsMiner machinery but extends to being Bitmain's authorized distributor in the Middle East. The firm recently started trading on the Abu Dhabi Securities Exchange (ADX) on December 5th with an initial share price of 2.25 dirhams ($0.60), a significant surge from its initial public offering (IPO) value of 1.50 dirhams ($0.41). The IPO of Phoenix overshot its target by 33 times, transacting 907,323,529 shares worth 1.3 billion dirhams ($371 million).
The dwindling costs of Bitcoin coupled with escalating energy prices have been posing challenges for cryptocurrency mining firms since the beginning of 2022. Case in point: Canaan, a mining corporation, had to amass more capital due to substantial revenue losses.
Published At
12/7/2023 6:48:12 PM
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