The Abu Dhabi conglomerate known as International Holding Company (IHC), one of the largest holding firms in the MENA region, is set to acquire a portion of cryptocurrency company Phoenix Group through one of its subsidiaries.
International Tech Group, a wholly-owned subsidiary of IHC, has officially entered into a definitive agreement to purchase a 10% stake in Phoenix Group, as disclosed on the Abu Dhabi Securities Exchange (ADX) last Friday. The company is presently in the process of completing all necessary procedures and securing regulatory approvals to finalize the transaction.
Phoenix Group is a technology conglomerate primarily specializing in the retailing of crypto mining hardware and the operation of mining facilities.
The increasing alignment between ADQ and IHC symbolizes the consolidation of economic influence under Sheikh Tahnoun’s leadership. Notably, IHC is 61% owned by Royal Group, a company led by Sheikh Tahnoun. Earlier this year, the closer ties between ADQ and IHC were evident as they joined forces to establish one of the Middle East’s largest independent asset management firms, with the strategic investment and partnership of General Atlantic.
IHC’s acquisition carries significant implications, indicating government involvement in the mining sector and holding great significance for Phoenix and the cryptocurrency industry.
Phoenix Group specializes in bitcoin mining and offers services related to the distribution and hosting of crypto-mining equipment. They maintain a portfolio of mining facilities across the Middle East, Europe, the United States, and Canada.
In a recent interview with Unlock, which will be published soon, Munaf Ali, the CEO of Phoenix Group, highlighted that the evolving regulatory landscape and the progressive stance of the UAE towards cryptocurrencies have played a significant role in the company’s growth. Consequently, the group has made a strategic decision to expand its focus beyond the UAE and encompass the entire MENA region, including the establishment of a new facility in Oman, as mentioned by Munaf.
Phoenix is currently in the midst of a significant venture in Oman, where they are embarking on the development of a substantial 150-megawatt mining facility in Salalah. Last August, Phoenix Group announced a partnership with Oman-based Green Data City, which possessed all the necessary permits and approvals from the government, to establish a $300 million crypto-mining farm. However, Munaf clarified to Unlock that the project remained solely owned by Phoenix and was not a joint venture with Green Data City.
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